The Pension Policy & Investment Committee of Enfield Council was scheduled to discuss the final outcome of the 2025 Pension Fund Evaluation, the budget and business plan for the Pension Fund for 2026-27, and the Investment Management Agreement with London CIV. The meeting also included updates on the cash position and cash management policy, as well as a quarterly monitoring report.

Final Outcome of the 2025 Pension Fund Evaluation

A significant portion of the meeting was dedicated to the final outcome of the 2025 Pension Fund Evaluation. This involved noting a report and Appendix A, and approving Appendix B. The evaluation, conducted by Hymans Robertson LLP, assessed the financial position of the London Borough of Enfield Pension Fund as at 31 March 2025. The report indicated a substantial improvement in the Fund's financial standing, with the funding level increasing from 104% in 2022 to 127% in 2025, resulting in a surplus of £337m. This improvement was largely attributed to strong asset performance and a higher discount rate. The report also detailed the employer contribution rates for the period 1 April 2026 to 31 March 2029, with an average primary rate of 17.8% and a secondary rate of -1.8%, leading to a total employer contribution rate of 16.0% of pay. The Funding Strategy Statement (FSS) was also presented for approval, outlining the Fund's approach to setting employer contributions, managing funding risks, and ensuring long-term solvency. The FSS had been reviewed and updated following consultation with participating employers.

Budget and Business Plan for Pension Fund 2026-27

The committee was scheduled to review the Pension Fund's budget and business plan for the upcoming financial year 2026-27. The report outlined the proposed work programme for the year, attached as Appendix A, for approval. It also presented the Pension Fund budget for 2026-27 for noting and comment. The total budget forecast for 2026-27 was £14.7 million, with investment management expenses accounting for the largest portion. Staffing, IT costs, actuarial/investment consultancy, and support services made up the remainder. The report noted that the Pension Fund budget is managed separately from the Council's main budget.

IMA/SLA/SLD with London CIV

The committee was scheduled to note a report concerning the Investment Management Agreement (IMA), Service Level Agreement (SLA), and Service Level Description (SLD) with London Collective Investment Vehicle (LCIV). The report explained that the forthcoming Pensions Bill 2025 would mandate that all assets held by the Fund be managed through LCIV, Enfield's pooling partner. This necessitated the formalisation of the relationship through an IMA. The agreement was designed to align with the Fund's current Investment Strategy Statement, including its asset allocation and responsible investment approach, while also incorporating specific cashflow requirements to support the Fund's operational needs. The IMA was framed by the Fund's required rate of return, informed by the actuarial discount rate of 5.9%. A new Investment Strategy was to be developed and brought forward for approval by 30 September 2026.

Cash Position and Cash Management Policy

The meeting agenda included a review of the Fund's cash position and the proposed Operational Cash Management Policy (CMP). The report sought approval for the CMP, which is designed to ensure the Fund maintains an appropriate level of operational cash to meet non-investment cashflow obligations, such as benefit payments and administrative expenses, without relying on investment liquidity or incurring excessive cash drag. The policy proposed maintaining a working capital float equivalent to three months of expected benefit and administration outgoings, approximately £14.3 million, with defined upper and lower tolerance limits. Cash levels would be monitored monthly, with actions triggered if balances fell below the lower limit or exceeded the upper limit. The policy was developed in recognition of the Fund's mature member profile and its cashflow-negative status.

Quarterly Monitoring Report - Including Risk Register

The committee was scheduled to note the quarterly monitoring report, which included an update on the Enfield Pension Fund Investments & Managers, an economic/market update, and an investment outlook. The report, prepared by the Fund's investment advisors, Aon, provided an update on the Fund's performance as at Q4 2025. The value of the fund as of 31 December 2025 was reported as £1,754.2 million, an increase of £32.6 million (1.9%) over the quarter. The report detailed performance across various asset classes, including equities, bonds, inflation protection illiquids, private equity, infrastructure, and property, comparing them against benchmarks. The report also highlighted the Fund's strategic asset allocation and noted that the Fund was significantly underweight in infrastructure. An update on the risk register pertaining to Pension Investments was also presented.

Other Scheduled Discussions

The agenda also included items for verbal updates on the Training Report and RI Update, and Pension Board and Admin Issues. The committee was also to be informed of the dates of future meetings. A portion of the meeting was scheduled to be held in private to discuss exempt information related to the Quarterly Monitoring Report.