The Pension Board of Hounslow Council met on Wednesday, 15 April 2026, to review the Pension Fund's monitoring reports, administration performance, and forward plan. Key discussions included updates on the McCloud remedy, the Pensions Dashboard Programme, and regulatory changes affecting the Local Government Pension Scheme (LGPS). The Board also considered the Pension Fund's risk register and progress on pooling assets.

Pension Board Monitoring Report

Hitesh Sharma, Strategic Pension Manager, reported that employer contribution payments were being monitored, with one employer triggering a threshold due to late payments, though no material concerns were identified. He confirmed that software development for the McCloud remedy was progressing well, with annual benefit statements expected to be issued before the statutory deadline. Hounslow's Pension Fund is fully connected to the Pensions Dashboard Programme, awaiting national go-live confirmation. Updates were provided on government consultations regarding Access and Fairness and Access and Protections, noting the phased implementation of reforms, including councillors becoming eligible for the pension scheme from May 2026.

The Board discussed data quality and record-keeping, specifically concerning members who have been marked as lost contact. West Yorkshire Pension Fund (WYPF) uses an external tracing provider, and while 130 out of 578 individuals had been verified, Hounslow officers felt a 70% confidence level was not sufficient for updating records. The Board expressed concerns about updating records based solely on third-party assessments and the potential for inadvertent disclosure of sensitive information. They requested further benchmarking data from other funds and advice from Information Governance regarding confidence thresholds.

A draft No Response Policy was also considered, proposing an additional administrative status for members whose benefits remain unclaimed after extensive engagement. The Board broadly supported the principle of introducing a recognised non-claimed status to improve visibility and management of such cases, while acknowledging ongoing national sector discussions. The Board noted its support for excluding historic annual allowance data omissions from data quality scoring, provided necessary calculations could still be completed manually.

Pension Fund Administration Performance Report

Hitesh Sharma highlighted that monthly performance levels remained consistently above the 85% target, with positive performance on high-priority cases and a continued fall in outstanding older cases. Matt Mott, representing WYPF, detailed that while some indicators were below target, improvements in automation and processing practices were steadily reducing backlogs. Significant progress had been made in deferred benefit processing and reducing outstanding cases. The Board welcomed the consistent fall in outstanding work volumes and noted that automation allowed specialist staff to focus on complex cases. Complaint volumes remained low, with recent decisions favouring Hounslow, although limited compensation payments were made for inconvenience. Administration costs were reported as lower than predicted, with future cost projections provided. The Board noted that a reserve of £1.8m had been established for systems and IT development, with initial quotes of £1.2m leaving £600,000 for further software development, particularly for the McCloud remedy. Matt Mott agreed to provide an update on audit recommendations and progress.

Pension Fund Risk Register

Members welcomed the introduction of a distinct geopolitical risk category, separating it from broader systemic economic risks. Andy Evans, Director of Finance, explained this new approach better reflected current global circumstances. The Chair noted his thanks for the submitted dashboard, which he considered significantly improved accessibility and reporting clarity. Yvonne Thompson mentioned that the Pension Fund Panel had also reviewed risk levels, and a report from the actuary assessing the impact of the Middle East conflict and stress testing on strategic asset allocation had been completed. The Chair inquired about the last review of investment manager performance risk, given the shift in influence under pooling, and it was suggested this should remain under review, with a reassessment of the entire risk register planned after the Investment Management Agreement (IMA) process.

Compliance with Pooling and Good Governance Guide

Andy Evans reported that implementation remained complex and evolving, with ongoing work with London CIV, investment advisers, and partner funds to establish future operating arrangements. Investment monitoring and governance mechanisms were receiving particular attention. Progress was being made across London authorities, and officers remained actively engaged with partners to ensure compliance with evolving requirements. No immediate concerns were identified that would warrant an increased risk score. The Chair acknowledged the significant workload involved in implementing these reforms.

Pension Board Forward Plan 2026/27

Yvonne Thompson highlighted upcoming pensions governance developments, training opportunities, and regulatory changes. It was noted that the Scheme Advisory Board had invited chairs from pension boards and panels to participate in engagement activities. The Chair suggested including a regular update on compliance with the Government's Pension Investment Review, similar to the existing pooling and good governance item. The Board noted that a substantial number of policy documents and guidance notes were expected. A London CIV training event was mentioned, primarily for newly appointed Pension Fund Panel members, though Board members would also be informed of relevant learning opportunities. The Chair welcomed the comprehensive forward plan.

Other Matters

The minutes of the meeting held on 15 April 2026 were agreed as a correct record, and the Board noted the progress against the Action Tracker. Amber-rated actions regarding a knowledge and skills self-assessment tool and the Board's training plan were noted, with Yvonne Thompson advising that developments from the governance review would provide clarity. The Board agreed the Action Tracker.

The Board noted the update concerning breaches and late payments, progress on the McCloud remedy and annual benefit statements, the Pensions Dashboard Programme, and latest regulatory developments. An update on Pension Board membership was provided, with recruitment activity underway to restore full membership. The Board requested further benchmarking and governance advice regarding tracing exercises and confidence thresholds for address updates. They also supported the proposed approach regarding historic annual allowance data.

The Board noted the Administration Performance Report, which detailed consistent performance above the 85% target, improvements in automation, and a reduction in outstanding cases. They also noted the low complaint volumes and the reserve established for systems and IT development.

The Pension Board noted the latest Pension Fund Risk Register and associated risk mitigation measures.

Finally, the Board noted the latest position concerning pooling compliance and governance reform implementation. The date of the next meeting was set for 28 October 2026.