The Local Pension Board of Leicestershire County Council is scheduled to convene on Wednesday, 29 April 2026. The meeting's agenda includes discussions on internal audit arrangements, the pension fund's administration report for the fourth quarter of 2025-26, and updates on the Fit for the Future initiative and risk management.

Internal Audit Arrangements

The Board is set to receive information regarding the internal audit arrangements for the Leicestershire County Council Pension Fund and LGPS Central Limited. This includes a summary of audits conducted during the 2025-26 financial year and the proposed internal audit plan for 2026-27. The report details the adoption of new internal audit standards, known as 'GIAS UK (Public Sector)', and outlines the development of key governance documents such as the Internal Audit Charter, Code of Practice for the Governance of Internal Audit, and the Internal Audit Strategy. The report also summarises the outcomes of audits conducted in 2025-26, noting that there were no high-importance recommendations. It highlights the work undertaken in relation to the National Fraud Initiative (NFI) and the six-monthly NFI Mortality Screening Service, which identified overpayments due to pensions continuing to be paid to deceased persons. Furthermore, the report details the ongoing collaborative work with partner fund internal auditors for LGPS Central Limited, including a review of audit reports for Investment Management and Property Investment Management. The planned internal audit work for 2026-27 is also outlined, with a focus on areas such as contribution banding changes, pension transfers, the Fit for the Future programme, and investments.

Pension Fund Administration Report

The meeting will review the Pension Fund Administration Report for January to March 2026, covering the fourth quarter of the financial year. This report details the main administrative actions, governance areas, and the performance of the Pensions Section against its key performance indicators (KPIs). The report indicates that all business process KPIs met their targets for the quarter, and while some KPIs for the full 2025-2026 year did not meet targets, there has been significant improvement compared to the previous year. The report also provides a RAG rating for general workloads in areas such as preserved benefits, aggregations, and transfers, highlighting areas requiring immediate attention. It notes a spike in transfer requests in January following the launch of a new website and outlines plans to bring in additional temporary resources to manage workload pressures. The report also covers governance matters, including one new Stage 2 Internal Dispute Resolution Procedure (IDRP) complaint related to a transfer out case, and confirms that no material breaches were reported in the quarter. Two new Internal Audit reports are also discussed: one on the Pension Dashboards Programme, which gave substantial assurance that the fund's progress is on track, and another on the checking and authorisation of payments and transfers, which also provided substantial assurance with one recommendation to remind staff to complete checklists. Updates on the new pension websites, McCloud remedy implementation, and the Pension Dashboards Programme are also included. The report details new contracts for address tracing and mortality screening services and provides an updated Pension Dashboards Programme timetable. It also addresses year-end 2025-2026 employer onboarding, highlighting progress and challenges, and outlines upcoming scheme changes effective from April and May 2026, relating to unpaid leave and the extension of the LGPS to elected councillors and mayors. Finally, the report details ongoing employer risk management, including outstanding admission agreements and bonds, and discusses the implications of Leicestershire Traded Services ceasing school food services.

Fit for the Future Update

An update on the Fit for the Future initiative will be provided, focusing on regulatory changes within the Local Government Pension Scheme (LGPS). The report notes that significant legislative and regulatory changes have been under consultation, with some implementation milestones adjusted by the government. These adjustments include extensions to the deadline for publishing the first investment strategy and the period for assets to be under pool management. The report also confirms that LGPS Central has met its 1 April implementation date, onboarding new partner funds and completing a governance review. Next steps for the Fund include reviewing existing governance arrangements, continuing to work with LGPS Central on asset transition, and reviewing the updated Investment Strategy Statement. Further work, such as developing a governance strategy and updating terms of reference for various committees, will await final guidance.

Risk Management and Internal Controls

The Board will receive an update on risk management and internal controls for the Pension Fund, as stipulated by the Pension Regulator's Code of Practice. The report details the Fund's risk register, which categorises 19 risks into six areas: Investment, Liability, Employer, Governance, Operational, and Regulatory. It explains the scoring system for current and residual risk, using a traffic light system. The report highlights changes to specific risk scores and the content of the risk register, including updates related to market returns, asset allocation policy, employer sub-funds, immediate payments, pensioner death identification, the McCloud case resolution, the national dashboard project, and proposed government changes regarding pooling and local government reorganisation. The report also includes the Risk Scoring Matrix and Criteria for assessing impact and likelihood.