The Barnet Pension Fund Committee met on 16 March 2026 to discuss the Fund's training strategy, external audit findings, and updates on the Fit for the Future reforms. Key decisions included the approval of an updated training strategy and policy, and the noting of the annual report and accounts, alongside Grant Thornton's audit findings. The committee also received an update on the progress of transitioning assets to the London CIV as part of the Fit for the Future reforms.

Training Strategy and Policy

The committee approved the updated draft Training Strategy and Policy, a requirement stemming from the government's Fit for the Future reforms aimed at strengthening governance and making training for committee members and officers a statutory obligation. The policy mandates training for all roles involved in fund governance, including committee members, local pension board members, officers, and the independent advisor. Induction training has been tightened, requiring members to complete core Pensions Regulator modules and Hyman's Lola training within three to six months of appointment, and to start this training before attending their first meeting. An annual training needs analysis will support personalised training plans. An escalation route is introduced for individuals who do not complete mandatory training, ranging from reminders to potential removal from their role. The financial impact is modest, primarily relating to the Hyman's Lola platform, costing approximately £4,500 annually, funded by the pension fund. Authority was delegated to the Executive Director of Finance, and subsequently the Senior Local Government Pension Service Officer, to implement the policy, maintain training records, and report compliance annually.

External Audit and Accounts

Hussan Shirwani, Executive Director of Strategy and Resources, presented the report on the external audit and accounts for the year ending 31 March 2025. The accounts were signed off on 24 February 2026. The final accounts showed a net asset increase of £74.2 million, bringing the total to £1.7 billion. Management expenses were £18 million, a decrease of £2 million from the previous year, mainly due to lower performance-related fees. Grant Thornton issued a disclaimer of opinion on the accounts for two main reasons: historical issues with opening balances from previous incomplete audits, and an inability to conclude work on membership data relating to the 2022 triennial valuation before the backstop date. A key finding was that employer contributions are not specifically classified between normal and deficit contributions, and management is working with administrators to rectify this. The committee noted the signed annual report and accounts, and the contents of Grant Thornton's audit findings report, along with management's responses.

Fit for the Future Update

Tim, Head of Partner Fund Solutions, provided an update on the Fit for the Future reforms, which are progressing through Parliament. The deadline for all assets to be transitioned to the pool is 31 March 2026. The pool has been working with partner funds, including Barnet Pension Fund, to ensure arrangements are in place. A core Investment Management Agreement (IMA) document has been negotiated with all 33 partner funds and finalised. Each partner fund must complete four schedules: client information, investment strategy, fees, and asset holdings at the point of transition. Once finalised, discussions with the 151 officer and monitoring officer will take place before the IMA can be signed. From the date of signing, the London CIV will assume investment responsibility. The committee retains a role in setting the strategic direction, but the implementation of the investment strategy will transfer to the London CIV. The report also highlighted the upcoming appointment of a Senior LGPS Officer by 30 September 2025 and an independent person. The committee noted the contents of the report regarding the proposed legislative and regulatory changes to the LGPS, subject to the passage of the Pension Schemes Bill, and the associated progress in transitioning assets to the London CIV.

Exit Credit Payments

Mark Fox, Pensions Manager, presented a report on a recent employer cessation and the resulting exit credit calculation, which required a committee decision. The employer exited the fund on 31 October 2025. An actuarial cessation evaluation was completed, and the exit credit calculated. The payment is subject to the fund's discretion. Under LGPS regulations, the administering authority must determine an exit credit payable, taking into account contributions, surplus levels, and representations from the employer. The actuary calculated a surplus based on the contractor basis used in historic valuations. However, recalculating the exit credit on an ongoing basis aligned with the 2025 valuation and new funding strategy statement reduced the surplus to a more appropriate level. The cessation policy, approved at the last committee meeting, sets out how cessation valuations should be conducted and how surpluses and deficits should be handled. The committee approved the recommendation for the exit credit payment to be made to the exiting employer as set out in Appendix B.

Pension Fund Investment Performance Report

Tim provided a high-level update on the quarterly investment performance for the quarter ending 31 December 2025. The assets were valued at £1.86 billion, an increase of 3.1% over the quarter, outperforming the benchmark. However, since December, there has been significant market news that will be discussed in more detail. Table 1 on page 315 lists decisions made by the committee and the progress made in implementing them. The committee noted the Pension Fund's investment performance and activity for the quarter ending 31 December 2025.

2025 Triennial Valuation

Mark Fox introduced the report setting out the virtual final results for the 2025 triennial evaluation and sought approval for the updated Funding Strategy Statement (FSS), included as Appendix B. Stephen Scott provided a detailed update on the valuation report. The reported position at 31 March 2025 showed a funding level of 130%, a significant improvement from 95% funded at the 2022 valuation. This improvement is primarily attributed to an increase in the assumed asset return expectation. The resulting contribution rates over the next three years are expected to average around 18-19%, a reduction from the previous period's 28%. The report detailed the movement in the funding position since the 2022 valuation, highlighting the impact of benefit increases, inflation outlook, demographic assumptions, and investment outlook. The committee noted the contents of the report and the scheme actuary's update, noted the final 2025 valuation report, and approved the Funding Strategy Statement for 1 April 2026 to 31 March 2029.

Investment Strategy Statement

Tim presented the report seeking approval of the updated draft Investment Strategy Statement (ISS) for Barnet Pension Fund, following the 2025 Investment Strategy Review. The draft ISS has been updated in line with draft recommendations and statutory guidance. Key changes include a 4% increase in index-linked gilts, a new allocation. The government's draft regulations require the ISS to be approved 18 months after the evaluation date, which is 30 September 2026. The report also highlighted a new requirement for an approach to local investment, defining it as the geographical area of the pool, with a long-term target range of 3%. Responsible investment is also now a requirement, and the Fund's approach has been maintained from the previous ISS, aligning with the Barnet Zero initiative. The committee approved the updated draft Investment Strategy Statement for consultation and delegated authority to the Executive Director of Resources to finalise and publish it.

Pension Fund Committee Work Programme

The committee noted the work programme for the upcoming year.

The meeting concluded with thanks to the officers for their work throughout the municipal year.