The Local Pension Board of Leicestershire Council met on Wednesday, 29 April 2026, to discuss a range of important matters concerning the administration and governance of the Pension Fund. Key topics included the arrangements for internal audit, a review of the Pension Fund's administration performance for the fourth quarter of 2025-26, and updates on the Fit for the Future regulatory changes impacting the Local Government Pension Scheme (LGPS). The Board also reviewed the Fund's risk management and internal controls.

Internal Audit Arrangements

The Board was scheduled to receive an update on the internal audit arrangements for the Leicestershire County Council Pension Fund and LGPS Central Limited. This included a summary of the internal audit work conducted during the 2025-26 financial year and the proposed internal audit plan for 2026-27. The report detailed the adoption of new internal audit standards, the development of key governance documents such as the Internal Audit Charter, Code of Practice for the Governance of Internal Audit, and an Internal Audit Strategy. Information was also provided on the outcomes of audits conducted, including the National Fraud Initiative exercise, which identified cases of pension overpayments to deceased persons. The report also outlined the collaborative internal audit work undertaken with partner funds for LGPS Central Limited, focusing on investment and governance areas.

Pension Fund Administration Report - Quarter Four (January to March 2026)

A report was presented detailing the main administrative actions for the fourth quarter of the 2025-26 financial year. This included an overview of the Pension Section's performance against its key performance indicators (KPIs), with all business process KPIs reportedly meeting their targets for the quarter. The report also provided a RAG rating (Red, Amber, Green) for general workloads across various areas, highlighting areas requiring attention. The administration of complaints through the Internal Dispute Resolution Procedure (IDRP) was also discussed, noting one new Stage 2 IDRP during the quarter. Updates were provided on the Pension Dashboards Programme, including the progress of national consumer testing and the status of member data services procurement. The report also detailed upcoming scheme changes effective from April and May 2026, relating to unpaid leave and the extension of LGPS access to elected councillors and mayors. Finally, the report addressed employer risk, outlining outstanding admission agreements and bonds, and provided an update on the cessation of Leicestershire Traded Services.

Fit for the Future Update

The Board was scheduled to receive an update on the progress of regulatory changes within the Local Government Pension Scheme (LGPS) as part of the Fit for the Future initiative. This report focused on legislative and regulatory changes that were expected to take effect from 1 April 2026. It noted that final regulations and timescales for the Pension Schemes Bill were still pending. The report detailed adjustments to key implementation milestones, including extensions for the publication of investment strategies and the appointment of LGPS senior officers and independent persons. An update on LGPS Central, the investment pooling company, was also provided, highlighting its progress in onboarding new partner funds and updating its operating model and legal framework. The report outlined next steps for the Fund, including reviewing governance arrangements and continuing work with LGPS Central on asset transition.

Risk Management and Internal Controls

The Board was to be informed of any changes relating to the risk management and internal controls of the Pension Fund, in line with the Pension Regulator's Code of Practice. The report detailed the Fund's risk register, which categorises risks into six areas: Investment, Liability, Employer, Governance, Operational, and Regulatory. It explained the scoring system for current and residual risks using a traffic light system. The report highlighted revisions to specific risks, including those related to market returns, asset allocation policy, employer sub-fund monitoring, and the identification of pensioner deaths. Updates were also provided on controls related to the McCloud case, the national dashboard project, and proposed changes resulting from government propositions on pooling and local government reorganisation. The report also included a risk scoring matrix and criteria for assessing impact and likelihood.