The Pension Fund Committee of Hammersmith and Fulham Council met on Tuesday 17 March 2026 to discuss key performance indicators for pension administration, review the triennial valuation results, and consider updates to the investment and funding strategies. The committee approved the final 2025 Triennial Valuation and noted the improved funding level of the Pension Fund.

Key Performance Indicators

The committee received an update on the performance of the Local Pension Partnership Administration (LPPA) in providing pension administration services to the Hammersmith & Fulham Pension Fund. Eleanor Dennis, Head of Pensions, presented the Key Performance Indicators (KPIs) for the period September to December 2025. The report indicated a general improvement in performance across various areas, including retirements, deaths, transfers, and refunds, with most KPIs meeting or exceeding their targets. However, concerns were raised about a dip in service quality and responsiveness, which LPPA was actively monitoring. Specific issues mentioned included problems with the member portal for retirees and a missed deadline for the Pension Dashboard. The committee resolved to note the contents of the report.

Pension Administration Update

Eleanor Dennis also provided an update on key areas of pension administration. The report highlighted that while the service delivered by LPPA had improved, it remained closely monitored. Challenges such as increasing legislative complexity, data management, and resourcing difficulties were noted. Member satisfaction survey responses remained low, with dissatisfaction increasing among deferred members. The report also detailed the number of complaints received, helpdesk call volumes, and communications efforts, including a newsletter and pre-retirement sessions. The committee noted the report and agreed to an additional spend of £1,271 for moving legacy data to a secure location.

Triennial Valuation

The committee was presented with the final results of the 2025 triennial actuarial valuation process for the London Borough of Hammersmith and Fulham Pension Fund. Siân Cogley, Pension Fund Manager, reported that the Fund's funding level had risen to 113% from 105% in 2022, largely due to strong investment returns. Key changes to the actuarial assumptions included an increase in the discount rate and an increase in the prudence level. As a result of the improved funding level, the Council, as a single employer within the fund, would see a reduced contribution rate of 19.4%. The committee approved the final 2025 Triennial Valuation and delegated the agreement of final revisions to the Chair and the Tri-Borough Director of Treasury and Pensions.

Funding Strategy Statement

Following the triennial valuation, a draft Funding Strategy Statement (FSS) was presented, outlining the strategy for meeting pension liabilities. The FSS aims to establish a clear and transparent strategy, support stable primary contribution rates, ensure regulatory compliance for solvency and cost efficiency, and take a prudent, longer-term view. The improved funding level meant the Council would pay a reduced primary contribution rate of 19.4% with no secondary contribution rate from 1 April 2026. The committee approved the draft FSS, delegating final approval to the Director of Treasury and Pensions in consultation with the Chair.

Investment Strategy Review

A high-level briefing was provided on the Investment Strategy Review, in advance of a full review. The report highlighted that the funding level had improved to 113% as at March 2025, with a surplus of £161 million. This improvement was attributed to strong investment performance and higher forward-looking return expectations. The committee was asked to discuss key strategic themes, including the appropriate risk versus return profile, cashflow requirements, diversification of growth drivers, inflation protection, and ESG considerations. The committee deferred a decision on the Investment Strategy until further independent advice could be received.

Pensions Bill Update

An update was provided on the changes to Local Government Pension Scheme (LGPS) pooling arrangements and governance arising from the Pensions Schemes Bill. The report outlined that the Bill mandates participation in asset pools and strengthens governance requirements. Key elements include mandatory pooling of 100% of assets, with individual investment strategies needing to align with the pool's offerings. The committee noted the report and was asked to consider the next steps for compliance.

London Collective Investment Vehicle Investment Manager Agreement (LCIV IMA)

The committee was presented with the final legal agreement between the Pension Fund and the London CIV (LCIV) to allow the fund's assets to be considered under pool management from 1 April 2026. This agreement is a key component of the Pensions Schemes Bill, requiring LGPS funds to place 100% of their assets under pooled management. The committee was asked to approve the Investment Management Agreement and delegate the agreement of final revisions to the Chair of the Pension Fund Committee in consultation with the Section 151 Officer and Tri-Borough Director of Treasury and Pensions.

Pension Fund Quarterly Update Q4 2025

The committee received a summary of the Pension Fund's overall performance for the quarter ended 31 December 2025. The market value of assets increased by £9 million to £1.491 billion. However, the Fund underperformed its benchmark net of fees by 2.16% over the quarter, delivering an absolute return of 1.15%. Over the year to 31 December 2025, the Fund delivered a positive return of 5.71%. The report also included a cashflow update and forecast, and an assessment of risks. The committee noted the update.