The Pensions Committee is scheduled to consider the business plans for the Wales Pension Partnership (WPP) and its investment management company (IMCo) for the upcoming financial year, alongside reviewing and approving the Funding Strategy Statement for the Cardiff & Vale of Glamorgan Pension Fund.

Wales Pension Partnership and WPP Investment Management Company Business Plans 2026/27

The committee is set to review and potentially approve the business plans for the Wales Pension Partnership (WPP) and the WPP Investment Management Company (IMCo) for the 2026/27 financial year. These plans outline the operational priorities, objectives, and financial budgets for both entities. The WPP, a collaboration of eight Welsh Local Government Pension Scheme funds, is establishing IMCo as an FCA-regulated investment management company in response to government reforms aimed at pooling LGPS assets. IMCo will manage over £25 billion in assets for the eight Welsh Local Government Pension Scheme administering authorities. The report details IMCo's strategic objectives, governance structure, financial summary, investment management approach, operations, staffing, and risk management. It highlights that 2026/27 will be a year of transition and capacity building for IMCo, with plans to recruit staff and establish its operational framework. The WPP's business plan focuses on its role in overseeing IMCo, while IMCo's plan details its responsibilities in managing investments, providing advice, and adhering to responsible investment principles.

Funding Strategy Statement and 2025 Valuation Update

The committee will also review and potentially approve the Funding Strategy Statement (FSS) for the Cardiff & Vale of Glamorgan Pension Fund. The FSS outlines how the administering authority aims to meet its fiduciary duty to ensure sufficient funds are available to pay pension liabilities while keeping employer contributions as stable as possible. This review is linked to the 2025 actuarial valuation, which has indicated a significant increase in the funding level to 111%, up from 98% in the 2022 valuation. The report notes that the probability of funding success has increased to 82%. The FSS details the fund's funding target, risk management strategies, main actuarial assumptions, and the process for setting employer contributions. It also covers employer events such as joining and exiting the fund, and the management of employer covenant. The document emphasises the importance of a prudent, long-term view of funding liabilities and aims to ensure the solvency and long-term cost efficiency of the fund. The FSS has been developed in consultation with the Fund Actuary, Aon, and has been reviewed by employers and the Local Pension Board, with no comments received.