The Pensions Board of Islington Council met on Tuesday 24 March 2026 to review the performance of the Pension Fund and discuss its future direction. Key discussions included the Fund's financial performance, the proposed updates to its investment strategy, and the ongoing administration of pensions.

Pension Fund Performance and Investment Strategy

The Board received an update on the Pension Fund's performance for the period October to December 2025. While specific figures were not detailed in the provided documents, the accompanying reports indicated a review of various fund managers' performance across different asset classes, including equities, property, and private debt. The Board also discussed the Investment Strategy Statement (ISS) and the Responsible Investment Policy, noting that a consultation process with fund members was underway. This consultation, managed by Prevision Research, aimed to gather feedback on proposed changes to the Fund's approach to human rights concerns, divestment from companies involved in Israeli settlements in the Occupied Palestinian Territories, and the specific case of Palantir Technologies. A pilot survey had been conducted in March 2026, with a full consultation planned to launch in May 2026.

Pension Administration and Financial Forecasts

The Board reviewed the Pension Administration Performance report, which covered the period from November 2025 to January 2026. While active membership had slightly decreased, deferred membership and pensioner numbers saw marginal increases. The report highlighted a dip in performance against targets for key administrative processes, attributed to factors such as Christmas closures, annual leave, resourcing challenges, and work diverted to the Pensions Dashboard and McCloud Remedy projects. Auto-enrolment figures showed a total of 141 starters with an opt-out rate of 7.80% during this period. The Board also noted a significant number of complaints related to the Voluntary Business Efficiency and Redundancy scheme, with lessons learned for future large-scale redundancies.

A 3-year forecast of Pension Fund Administration Costs and Annual Cashflow was presented, projecting a net negative cashflow from 2026/27 onwards, necessitating the use of investment income to meet expenditure. The forecast indicated a projected cash balance of £12 million at the end of March 2026.

Risk Management and Future Planning

The Board examined the Pensions Risk Register, which outlines potential risks in the administration of the Islington Pension Fund and mitigation measures. Several risks were reviewed, with some seeing their inherent or mitigated risk scores increase due to factors like the departure of a Payroll Consultant and the upcoming Access and Fairness reforms. The Board also considered the Pensions Board Forward Work Programme for 2026/27, which detailed planned agenda items and training topics, focusing on ensuring compliance with LGPS regulations, reviewing fund risks, and overseeing administration and governance.

Funding Strategy Statement Consultation

A significant portion of the meeting was dedicated to the 2025 Actuarial Valuation - Draft Funding Strategy Statement (FSS) Consultation Results. The Board was asked to consider the draft FSS, which included proposed updates to key funding parameters such as real discount rates, the surplus reserve, and deficit recovery periods. The report detailed changes to wider policies, including the Asset Share Policy, the Academies/MATs Policy, and Admission and Termination Policies, with specific attention to pass-through arrangements and non-taxpayer backed employers. The consultation aimed to balance employer affordability with long-term fund sustainability.

The meeting also included updates on the Pensions Dashboard Project, McCloud Remedy Updates, and Pension Office Resourcing, with consideration being given to recruiting two additional Pensions Officers to address evolving demands. The Board was also informed about various regulatory updates from bodies such as the Pensions Regulator and the Scheme Advisory Board.