The Pension Committee of Waltham Forest Council met on Wednesday 25 March 2026 to discuss a range of important matters concerning the management and performance of the council's pension fund. Key decisions included the approval of the draft Funding Strategy Statement, the adoption of updated training requirements for committee members, and the agreement on the proposed business plan objectives for 2026-2028.

Training and Governance Updates

The committee agreed that members would complete Hymans online training modules by the next meeting and undertake other agreed training sessions, aligning with the approved Training Policy. This decision was made following a presentation from Mercer on the Fit for the Future reforms to pensions legislation, which necessitate enhanced training and governance. The committee also noted a report on the Pension Regulator's General Code of Practice, confirming progress against an action plan to ensure compliance.

Financial Performance and Management Expenses

The committee reviewed the pension fund's investment performance as of 31 December 2025, noting a total fund value of £1,202.4m. While the fund achieved a quarterly return of 2.0%, it underperformed its benchmark of 2.8%. Over the past year, the fund returned 6.0%, significantly underperforming its benchmark of 12.2%, largely due to underperformance in specific mandates like the LCIV Global Equity Focus Fund and the Darwin Leisure Property Fund. The committee agreed to a proposed expense budget of £2.339m for the 2026/27 financial year, which includes increases for actuarial services and administration charges.

Funding Strategy and Investment

A significant discussion revolved around the draft Funding Strategy Statement (FSS) for the London Borough of Waltham Forest Pension Fund. The committee agreed to the proposed draft FSS, which outlines how employer contributions and risks will be managed. This included agreeing to proposed real discount rates that have increased since the previous valuation, a 10% sustainability reserve for employers in surplus, and a minimum deficit recovery period of 12 years for open employers. The committee also agreed to delegate minor changes to the FSS to fund officers.

In relation to investment strategy, the committee noted the implementation of changes following the November Investment Strategy Review, including redemptions from the LCIV Passive Equity Progressive Paris Aligned Fund and LCIV Global Equity Focus Fund, and subscriptions to the LCIV MAC Fund and LCIV Short Duration Buy and Maintain Credit Fund.

Business Plan and Administration

The committee approved the Pension Fund Business Plan Objectives for 2026-2028, which sets out priorities, targets, and timescales for the fund. An update on pension administration services was also noted, highlighting strong performance statistics for the third quarter of 2025/26, with key work items meeting or exceeding targets. The report also mentioned the successful implementation of the new member portal, Engage, and improvements in data quality tests.

London CIV and Other Matters

The committee received an update on the London CIV, noting that local investments are a broad asset class including housing, energy, and infrastructure, and that the London CIV is responsible for creating investment vehicles for these. The committee also noted that the Investment Management Agreement (IMA) had been signed in May 2026, with all assets already under the management of the London CIV. Draft versions of the Investment Strategy Statement and Governance Statement were to be produced for the next meeting.

The committee also agreed that Buckinghamshire Pension Fund would become a shareholder in the London CIV and approved the Strategic Director of Resources to sign the revised Shareholder and Articles of Association.

Finally, the committee resolved to exclude the press and public from the remainder of the meeting to discuss exempt information relating to the London CIV presentation.