The Pension Fund Committee of Hammersmith and Fulham Council was scheduled to discuss the performance of the Local Pension Partnership Administration (LPPA) and receive an update on pension administration activities. The meeting agenda also included a review of the triennial valuation results, the funding strategy statement, and the investment strategy, alongside updates on the London Collective Investment Vehicle (LCIV) and the Pension Fund's quarterly performance.

Key Performance Indicators

The committee was scheduled to review the Key Performance Indicators (KPIs) for the Local Pension Partnership Administration (LPPA) in providing pension administration services to the Hammersmith & Fulham Pension Fund. This report, covering the period from September to December 2025, detailed the LPPA's performance against service level agreements. It noted an increase in processed cases compared to previous quarters, with particular focus on retirements, deaths, transfers, and refunds, where performance generally met or exceeded targets. The report also highlighted ongoing efforts to improve service quality and mitigate operational risks.

Pension Administration Update

This paper provided a summary of activities in key areas of pension administration for the Hammersmith & Fulham Pension Fund (HFPF), which delegates its administration duties to the LPPA. The report indicated that while the service delivered by LPPA has shown improvement, it remains under close monitoring. Challenges such as increasing legislative complexity, data management, resource limitations, and employer engagement were noted. The update covered employer engagement, member satisfaction survey responses, complaint trends, helpdesk call volumes, and communications, including newsletters and pre-retirement sessions. It also touched upon regulatory issues impacting the fund, such as the McCloud remedy, the Pensions Dashboard, and changes arising from the Pensions Bill.

Triennial Valuation

The committee was scheduled to be introduced to the final results of the 2025 triennial actuarial valuation for the London Borough of Hammersmith and Fulham Pension Fund. Key highlights from the valuation indicated an increase in the Fund's funding level to 113% from 105% in 2022, largely attributed to strong investment returns. The report noted two significant changes in actuarial assumptions: an increase in the discount rate and an increase in the prudence level. The recommendations included approving the final 2025 Triennial Valuation and delegating agreement of final revisions to the Chair and the Tri-Borough Director of Treasury and Pensions.

Funding Strategy Statement

This item focused on the draft Funding Strategy Statement (FSS) produced by the Fund's actuary, Hymans Robertson, following the 2025 triennial actuarial valuation. The purpose of the FSS is to establish a clear and transparent strategy for meeting pension liabilities. The statement outlined objectives such as taking a prudent long-term view for solvency, using a balanced investment strategy for cost efficiency, ensuring stable employer contribution rates where appropriate, and reflecting different employers' characteristics. The report detailed the consultation process with employer bodies and the reasons for the proposed decision to approve the draft FSS.

Investment Strategy Review

This paper provided a high-level briefing in advance of a full Investment Strategy Review, outlining key strategic themes to inform the review once the Fund's actuarial valuation results were finalised. The report discussed the current fund position, noting an improved funding level and higher forward-looking return expectations. It presented the current and target asset allocations, highlighting considerations such as the overall risk versus return profile, cashflow requirements, diversification of growth drivers, inflation protection, and ESG considerations. Implementation considerations, including the impact of the Fit for the Future legislation and the role of the London Collective Investment Vehicle (LCIV), were also outlined.

London Collective Investment Vehicle Investment Manager Agreement (LCIV IMA)

This report was scheduled to outline the final legal agreement between the London Borough of Hammersmith and Fulham Pension Fund and the London CIV (LCIV). This agreement is a key component for allowing the fund's assets to be considered under pool management as of 1st April 2026, in line with the Pensions Schemes Bill. The report included the core LCIV IMA, which defines the terms and conditions for asset management, and fund-specific schedules aligning with the Fund's Investment Strategy Statement.

Pension Fund Quarterly Update Q4 2025

This paper provided the Pension Fund Committee with a summary of the Pension Fund's overall performance for the quarter ended 31 December 2025. It included an investment performance report showing an increase in the market value of assets, although the Fund underperformed its benchmark net of fees over the quarter. The update also covered the Pension Fund's cashflow monitor, including current account and invested cash movements, and cashflow forecasts. Additionally, it presented an assessment of risks and actions taken to mitigate them, with a review of specific red risks from the risk register. An update on the London CIV was also included, detailing progress on the Investment Manager's Agreement and personnel changes.

Exclusion of the Public and Press

The committee was invited to resolve to exclude the public and press from the meeting during the consideration of specific agenda items. This was proposed on the grounds that these items contained likely disclosures of exempt information, as defined in the Local Government Act 1972, and that the public interest in maintaining the exemption outweighed the public interest in disclosure.