The Pension Fund Committee of Barnet Council met on Tuesday 13 January 2026 to discuss the administration of the pension fund, legislative changes affecting the Local Government Pension Scheme (LGPS), and the fund's investment strategy. Key decisions included the approval of new admission agreements for several organisations, the adoption of new policies on cessations and prepayments, and a significant shift in the fund's investment strategy to align with upcoming regulatory changes and to manage risk more effectively.

Administration Update and Policy Approvals

The committee received an update on the administration performance of West Yorkshire Pension Fund (WYPF), which continues to meet its key performance indicators. The number of complaints and internal dispute resolution cases remain low. Compensation payments were discussed, including a significant payment to Member M to reimburse financial loss. The Pensions Dashboard is now expected to be accessible to individuals in late 2026 or early 2027.

Two new policies were approved: the Draft Cessation Policy and the Draft Prepayments Policy. The Cessation Policy outlines the fund's approach to employers leaving the fund, detailing how exit credits and deficit payments are handled. The Prepayments Policy clarifies the circumstances under which employers can prepay regular contributions, including the application of a discount to reflect assumed investment returns.

The committee also noted progress on outstanding admission agreements and cessations. Several new organisations were approved for admission to the fund, including Capita Business Services Limited, HCL (Cromer Road School), Atlas (Ashmole Academy), and Apcoa. Updates were provided on ongoing efforts to finalise admission agreements and to recover outstanding cessation debts from former employers.

Risk Management Review

A review of the fund's administration and non-administration risk registers was presented. Several risks saw their scores reduced due to improved controls and processes. For instance, the risk associated with the failure of non-public sector employers (ADM06) was reduced due to a new policy requiring new admitted bodies with fewer than 100 members to operate on a pass-through basis, transferring liabilities to the ceding employer in case of default. Similarly, the risk related to having appropriate personnel in key roles (ADM08) was reduced due to successful recruitment at WYPF. The risk of negative media exposure and member experience (ADM13) was also reduced due to WYPF's consistent service delivery and the introduction of a standard response regarding investments in Israeli companies.

A new risk, GOV05, was added to the non-administration register, stemming from the Fit for the Future consultation and the ongoing Pensions Bill, due to the strict timescales imposed on governance and investment.

Fit for the Future Update and Investment Strategy Review

Significant changes to the Local Government Pension Scheme (LGPS) regulations, effective from 1 April 2026, were discussed. These changes, driven by the government's Fit for the Future initiative, will require all assets to be controlled and managed by asset pools. The committee noted the summary of these legislative and regulatory changes.

To comply with these new regulations, the Pension Fund is transitioning its assets to the London CIV (Collective Investment Vehicle). As of 30 September 2025, approximately 64% of the fund's assets were directly invested with London CIV, with a further 15% under pooled management. The remaining 21% are off-pool assets that need to be transferred. The committee delegated authority to the Executive Director of Resources to finalise and approve the Investment Management Agreement (IMA) with London CIV and associated asset transition plans. The IMA is a crucial contractual mechanism that will enable the transfer of investment management responsibility for all assets to London CIV.

Furthermore, the committee approved the admission of Buckinghamshire Pension Fund to the London CIV. This decision follows the dissolution of two other asset pools, ACCESS and Brunel, which required their participating funds to find new pools. Buckinghamshire Pension Fund formally requested to join London CIV, and their business case received unanimous approval from existing partner funds.

The committee also reviewed the Pension Fund's strategic asset allocation as part of its triennial valuation process. Following an assessment by investment consultants Hymans Robertson, the committee approved a change to the fund's strategic asset allocation, adopting an Option 1, Moderate de-risk strategy for Middlesex University . This change aims to protect the fund's surplus position and maintain stable employer contribution rates. The Executive Director of Resources was delegated authority to implement this new strategy.

Investment Strategy: Asset Pooling and Performance Report

Further details on asset pooling were discussed, focusing on the reallocation of the fund's Secured Finance allocation. Currently managed off-pool, this 6% allocation will be reallocated to the LCIV MAC Fund and LCIV Private Debt II. This move is intended to align with new regulatory requirements and improve diversification. The committee also approved modifications to the fund's cash management strategy to align with pooling guidelines, with a view to pooling cash balances with London CIV.

The committee received the Pension Fund Investment Performance Report for the quarter ending 30 September 2025. The fund's investment portfolio was valued at £1.79 billion, showing a net positive return of 3.4% for the quarter. While the fund has delivered consistent long-term positive returns, it has underperformed its strategic benchmark over some longer-term periods. The report detailed the fund's asset allocation, manager performance, and market background. Key actions noted included the completion of the transition of Barings High Yield investment to the LCIV MAC Fund and the commitment to the LCIV Private Debt II Fund. The fund's pooling ratio increased to approximately 70% of assets invested directly with London CIV.