The Local Pension Committee meeting scheduled for Friday, 20 March 2026, was set to cover a comprehensive agenda focused on the financial health and strategic direction of the Leicestershire County Council Pension Fund. Key discussions were anticipated around the Pension Fund Valuation, including the Funding Strategy Statement and its results, alongside updates on investment performance, risk management, and responsible investment initiatives. The meeting also planned to review the Pension Fund's budget and business plans for the upcoming financial year.

Pension Fund Valuation – Funding Strategy Statement and Results

A significant portion of the meeting was dedicated to the Pension Fund Valuation, with a particular focus on the Funding Strategy Statement (FSS) and its results. The report sought the Committee's approval of the FSS, which underpins the Fund's policies for setting employer contribution rates. Attendees were also asked to note the Fund's final valuation report, which includes the Rates and Adjustments Certificate. This valuation, carried out every three years, is crucial for setting employer contribution rates for the period of April 2026 to March 2029. The report detailed proposed changes to the FSS, including a new section on employer open or closed status, and the explicit mention of the Fund's approach to alternative investment strategies, such as facilitating buy-ins or insurance solutions. The introduction of a corridor approach for cessation calculations was also scheduled for discussion, designed to protect the Fund and remaining employers when an employer exits the scheme. Consultation replies from employers and the Department for Education were to be considered, alongside comments from the Pension Board. The report also included the Fund's Valuation Report, detailing employer groups' average valuation rates for 2025 and 2025, and appendices covering the regulatory framework, roles and responsibilities, a glossary, risks and controls, actuarial assumptions, passthrough policy, academies policy, contribution reviews policy, cessation policy, and the governance audit trail.

LGPS Central Presentation

A presentation from LGPS Central was scheduled to provide an update on the public markets investments the Fund holds with the organisation. This presentation was expected to cover a private markets overview, summarising the Fund's investments in infrastructure, property, private credit, and private equity. Details of partner fund commitments, sub-commitments, closing values, drawn capital, Internal Rate of Return (IRR), benchmarks, and targets were to be presented for each asset class. Specific updates were anticipated for the LGPS Central UK Direct Property Fund, including its strategy, performance, and valuation, as well as the LGPS Central Private Equity Partnerships Overview.

Risk Management and Internal Controls

The report aimed to inform the Local Pension Committee (LPC) of any changes relating to the risk management and internal controls of the Pension Fund, as stipulated by the Pension Regulator's Code of Practice. The risk register, which categorises risks into investment, liability, employer, governance, operational, and regulatory areas, was to be presented. Risks were to be viewed by impact and likelihood, with current and residual risk scores tracked on a traffic light system. Updates were expected on specific risks, including market investment returns, sufficiency of Fund assets, data accuracy from employers, employer covenant assessment, and potential knowledge gaps due to staff retirements. The implications of the Fit for the Future proposals on the risk register were also to be considered.

Valuation of Pension Fund Investments

This report was intended to provide the LPC with an update on investment markets and the performance of individual asset classes, as well as the total value of the Fund's investments as at 31 December 2025. Market performance and outlook were to be discussed, including global growth forecasts, economic conditions in the US, China, and Europe, and the UK's inflation and labour market situation. Central bank monetary policy and government bond yields were also on the agenda. The report was expected to detail credit spreads, global equity market performance, and the Fund's diversification strategy. A summary of global asset class performance and correlations was to be presented, along with details of portfolio changes during the quarter ending December 2025 and investments approved at the Investment Sub-Committee. The proposed changes to the Strategic Asset Allocation (SAA) for 2026, including allocations to local investments, UK Government bonds, and asset class reviews, were also scheduled for discussion.

Outcome of the Responsible Investment Survey and Responsible Investment Update

This report aimed to advise the LPC of the key findings from a survey on responsible investment (RI) views, seek approval for the Responsible Investment Plan 2026/27, and present an update on the Fund's quarterly voting and stewardship activities. The survey, conducted from October 2025 to January 2026, gathered views from scheme members and employers on RI and climate-related risks. Key findings were expected to highlight the importance of economic factors, investor protections, and company management, alongside human rights, labour standards, natural capital, and climate risks. The report was also to provide an update on voting and stewardship activities undertaken by LGPS Central, LGIM, and the Local Authority Pension Fund Forum.

Pension Fund – Business Plan and Budget 2026/27

The report sought the LPC's approval of the Pension Fund's Administration, Investment, and Governance Business Plans, along with the Training Plan for 2026, and the Pension Fund budget for 2026/27. The Pension Section's Administration Business Plan was expected to detail changes impacting the Fund, including the Pensions Dashboards programme, McCloud implementation, review of the administration system contract, and preparation for Local Government Reorganisation. The Investments Business Plan was to cover policies, asset allocation, Fund valuation, and reporting. The new Governance Business Plan was to consolidate areas from previous plans and align with Fit for the Future proposals. A summary of the budget was to be presented, including projected estimates for 2025/26 to 2027/28, with a focus on investment management expenses, LGPS Central costs, staffing, IT, and actuarial charges.

Pension Fund Policy Report

This report was intended to provide an annual review of any new policies introduced or amendments made to existing policies covering both administration and investments. The summary of current policies was to be presented, including the Investment Strategy Statement (ISS), Investment Adviser Objectives, Net Zero Climate Strategy (NZCS), Cash Management Strategy, Funding Strategy Statement (FSS), Administration Strategy, Fund Training Strategy, Conflict of Interest Policy, Fund Employer Risk Policy, Administering Authority Discretions Policy, Administering Authority Distribution of Death Grant Policy, Administering Authority Overpayment of Pensions Policy, Cyber Policy, Complaints Process, Monitoring Contributions Process, Data Improvement Plan, and Internal Controls. Key amendments to the ISS were expected to reflect the Fit for the Future proposals and the evolving role of LGPS Central.

The meeting was also scheduled to include updates on the Pension Fund's Investment Strategy Statement, Investment Adviser Objectives, Cash Management Strategy, Funding Strategy Statement, Administration Strategy, Fund Training Strategy, Conflict of Interest Policy, Fund Employer Risk Policy, Administering Authority Discretions Policy, Administering Authority Distribution of Death Grant Policy, Administering Authority Overpayment of Pensions Policy, Cyber Policy, Complaints Process, Monitoring Contributions Process, and Data Improvement Plan. The implications of the Fit for the Future proposals were to be discussed in relation to these policies.

The meeting was scheduled to conclude with recommendations for the Local Pension Committee to approve the revised policies and strategies, and to authorise the Director of Corporate Resources to make any necessary minor amendments to the Training Strategy and Conflict of Interest Policy.