The Pensions Committee of Barking and Dagenham Council met on Thursday 26 March 2026 to discuss the council's investment strategy, actuarial valuation, and pension fund accounts. Key decisions included the approval of a new strategic asset allocation for the pension fund, which will see an increase in UK Gilts and a reduction in global equities, and the approval of the Pension Fund Annual Report for 2024/25.

Investment Strategy

The committee discussed the proposed Strategic Asset Allocation (SAA) for the pension fund, which has been updated following the latest actuarial valuation. The London CIV¹ undertook this work, and the proposed changes aim to reduce overall risk without sacrificing future forecast returns. The key changes include a reduction in listed equities from 53% to 48%, an increase in UK Government Bonds from 3% to 10%, and the introduction of an allocation to Multi Asset Credit. The modelling for this proposed option forecasts a return of 6.5% per annum, with an 8% reduction in Value at Risk compared to the current SAA. The committee agreed to proceed with increasing the allocation to UK Gilts and to commission the London CIV to prepare an updated Investment Strategy Statement (ISS).²

Actuarial Valuation

The committee received the final report on the 2025 actuarial valuation of the pension fund. The valuation, carried out by Barnett Waddingham³, showed an improved funding position, with the funding level increasing from 101% to 108% as at 31 March 2025. This has resulted in a reduction in the employer contribution primary rate from 21.5% to 18.1% of payroll. The committee noted the actuary's final report and approved the revised Funding Strategy Statement (FSS).⁴

Pension Fund Accounts Update and Annual Report

The committee received an update on the pension fund accounts for 2024/25. Grant Thornton⁵, the council's external auditors, issued disclaimed opinions on the financial statements for 2019/20 to 2024/25 due to various issues, including discrepancies in membership data and challenges with valuing Level 3 investments. Despite these challenges, Grant Thornton indicated that a proper audit opinion might be possible for the 2025/26 accounts if improvements are made. The committee noted the updated position of the pension fund accounts and approved the Pension Fund Annual Report for 2024/25.⁶

London CIV Investment Management Agreement

The committee was asked to approve the London CIV Investment Management Agreement (IMA). This agreement is necessary to comply with the 'Fit for the Future' legislation, which requires administering authorities to transition all remaining assets to their chosen pool by 31 March 2026. The IMA will enable the Fund to transition its remaining mandates to the London CIV. The estimated annual cost of these additional responsibilities for the London CIV is £194,465. The committee approved the IMA, noted the London CIV's response on Responsible Investment, and approved the revised Pensions Administration Strategy.⁷

Admissions to the Fund

The committee approved the admission of four new bodies to the Fund without requiring a bond, due to the small number of employees involved: Alliance Partnership (4 employees), Innovate (4 employees), Taylor Shaw (1 employee), and Nourish (2 employees). Edwards and Ward (1 employee) was also approved for admission without a bond.