The Local Pension Board of Leicestershire Council is scheduled to convene on Wednesday, 29 April 2026, to review a range of reports concerning the administration, governance, and financial management of the Leicestershire Pension Fund. Key discussions are expected to cover internal audit arrangements, the fund's financial performance over the last quarter, and updates on the Fit for the Future programme.

Internal Audit Arrangements and Plans

The Board is set to receive an update on the internal audit arrangements for the Leicestershire County Council Pension Fund and LGPS Central Limited. This report will summarise the outcomes of internal audits conducted during the 2025-26 financial year and outline the internal audit plan for 2026-27. It will also address the implementation of the Global Internal Audit Standards in the UK Public Sector. The Leicestershire County Council Internal Audit Service (LCCIAS) provides the internal audit function, and the report details the work conducted, including the National Fraud Initiative (NFI) exercise which identified instances of pension payments continuing to deceased persons. The plan for 2026-27 includes audits on contribution banding changes, pension increases, pension transfers, and the Fit for the Future programme.

Pension Fund Administration Report

A comprehensive report on the Pension Fund Administration for January to March 2026, the fourth quarter of the financial year, is scheduled for review. This report details the main administrative actions, governance areas, and the performance of the Pensions Section against its key performance indicators (KPIs). While all business process KPIs met their targets for the quarter, the full year performance shows some areas have not met targets, though significant improvement has been noted compared to the previous year. The report also highlights general workloads, with a RAG rating indicating areas below, close to, or better than target. Issues with Preserved Benefits and Aggregations are noted as being below target. The report also covers the Internal Dispute Resolution Procedure, breaches log, and internal audit reports received during the quarter, including substantial assurance on the Pension Dashboards Programme and checking and authorisation of payments. Updates on the Pension Websites, McCloud remedy implementation, and the Pension Dashboards Programme are also included.

Fit for the Future Update

An update on the Fit for the Future programme will be provided, detailing progress on regulatory changes within the Local Government Pension Scheme (LGPS). This programme aims to reduce costs, enhance investment returns, and expand asset classes through the pooling of assets into entities like LGPS Central. The report will outline the implications of legislative and regulatory changes, including extensions to key implementation milestones such as the deadline for publishing investment strategies and appointing senior LGPS officers. LGPS Central has confirmed it has met its 1 April implementation date, onboarding new partner funds and updating its operating model. The report will also detail 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 will receive an update on the risk management and internal controls of the Pension Fund, as required by the Pension Regulator's Code of Practice. The report details the Fund's risk register, which is divided into six areas: Investment, Liability, Employer, Governance, Operational, and Regulatory. It highlights changes to risk scores, including updates to reflect the Fit for the Future programme and its impact on investment manager decisions and oversight. Specific risks being monitored include market returns, failure to account for all risks in asset allocation, and the implications of climate change on fund assets. Operational risks such as cyber attacks and errors in pension calculations are also detailed, alongside regulatory risks related to the McCloud case, the national dashboard project, and proposed government changes to pooling and local government reorganisation. The report includes a risk scoring matrix to assess the impact and likelihood of identified risks.