The Lambeth Pensions Board met on Wednesday 28 January 2026 to discuss the fund's performance, risk management, and administrative policies. Key decisions included noting the Pension Administration Service performance update, approving the new Overpayment and Underpayment Policy, and reviewing the fund's risk register.

Pensions Administration Performance Report

The board received an update on the Pensions Administration Service's performance for October to December 2025. Linda D'Souza, Assistant Director of Payroll and Pensions, reported that 1,821 cases were handled during the quarter, with performance indicators remaining consistently high. Member engagement through the 'Engage' platform continued to grow, with 7,083 registered users. The team also progressed work on the McCloud remedy, reviewing multiple member records to ensure protections are correctly applied. Preparations for the Pensions Dashboard Programme are ongoing, with the fund successfully connected to the infrastructure and actively cleansing membership data. A consultation on LGPS 'Access and Protections' was launched by the Ministry of Housing, Communities and Local Government, focusing on changes to the normal minimum pension age, reinstating LGPS access for councillors, allowing multi-academy trusts to consolidate schools, and extending Fair Deal protections for outsourced workers. The fund's response to this consultation was noted.

Risk Register Update

The board reviewed the Lambeth Pension Fund Risk Register, noting that there were no changes to risk ratings since the previous meeting. However, the narrative for risks PA18 (ESG) and PA20 (Stewardship) had been updated to reflect discussions on conflict zones. Councillor Nicole Griffiths raised concerns about the narrowness of the UN database used to identify companies involved in the Occupied Palestinian Territories, suggesting that the fund might still have exposure to companies with links to Gaza. Officers confirmed that while the fund had no direct investments in companies on the UN list, they acknowledged the difficulty in definitively stating there was no exposure to other potentially complicit companies. The board recommended expressing strong support for the Pensions Committee's ongoing work in integrating Environmental, Social, and Governance (ESG) considerations into investment decisions.

Overpayment and Underpayment Policy

A new Overpayment and Underpayment Policy for the Lambeth Pension Fund was presented by Linda D'Souza. This policy aims to replace reliance on the council's corporate debt policy and establish clear procedures for preventing, identifying, rectifying, and managing incorrect pension payments. The policy outlines measures for preventing overpayments, the responsibilities of scheme members, and procedures for managing and recovering overpayments and underpayments, including tiered authorisation levels for writing off overpayments. The policy was recommended for approval by the Pensions Committee.

General Update

Robert Browning, Acting Assistant Director of Finance, provided a general update on several key areas. He discussed the ongoing transition of off-pool assets to the London CIV (LCIV) by the target deadline of April 2026, noting the complexity of agreeing Investment Management Agreements (IMAs) with 32 boroughs. The Fit for the Future programme, aimed at consolidating the LGPS into fewer asset pools, was progressing, with consultations on new regulations and guidance underway. A governance review by Hymans Robertson had been completed, examining team structure, board and committee effectiveness, and compliance with the Pension Regulator's code of practice. Recommendations from this review will be presented in future meetings. Mr. Browning also confirmed that the fund had no exposure to companies on the UN's updated database of businesses involved in illegal Israeli settlements in the Occupied Palestinian Territories as of June 2025. Updates were also provided on the Pensions Committee's recent meetings, the progress of the 2024/25 fund accounts audit, and upcoming training opportunities for board members.

Investment Performance Report

The board received an update on the fund's investment performance for the quarter ending 30 September 2025. The fund outperformed its benchmark for the quarter, returning 4.7% against a benchmark of 4.6%. However, performance over one, three, and five-year periods fell short of their respective benchmarks. The report highlighted that private equity funds had underperformed, largely due to their maturing status. The fund's asset allocation showed an overweight position in global equities and Multi-Asset Credit, and an underweight position in private equity, private debt, and the Liability Driven Investment (LDI) portfolio. The report also noted that the fund's exposure to fossil fuels had increased slightly to 0.47% of the fund. The indicative funding level as at 30 September 2025 was estimated at 136%.