The Pensions Committee of Cornwall Council met on Thursday 12 March 2026 to review the Cornwall Pension Fund's financial performance, business plan, and governance. Key decisions included the approval of the Fund's Business Plan for 2026-2029 and the formal adoption of the Funding Strategy Statement.

2025 Final Actuarial Valuation Report and Funding Strategy Statement

The Committee received the 2025 Final Actuarial Valuation Report, which assesses the financial health of the Cornwall Pension Fund. This valuation is a statutory requirement to ensure the Fund has a sustainable contribution plan and investment strategy. The report detailed the Fund's funding level as at 31 March 2025 and set employer contribution rates for the period 1 April 2026 to 31 March 2029. The Committee noted the report and requested further clarification from officers.

Additionally, the Committee formally adopted the Funding Strategy Statement (FSS) from 1 April 2026. This statement, previously approved for consultation on 10 December 2025, outlines the long-term objectives for managing the Fund's assets and liabilities. The consultation process involved engagement with scheme employers and the Department for Education (DfE), with no amendments made to the FSS as a result of the feedback received.

Cornwall Pension Fund Business Plan 2026-2029

The Committee approved the Cornwall Pension Fund's Business Plan for 2026-2029. This three-year plan outlines the Fund's priorities, key areas of focus, and budget. The plan addresses significant changes anticipated over the next few years, including wide-ranging reforms to the Fund's investments and governance functions stemming from the 'Fit for the Future' consultation, as well as substantial changes to the administration function due to the 'Access and Fairness' and 'Access and Protection' consultations. These changes are expected to be resource-intensive, with some requiring investigations and recalculations dating back to 2005. The Business Plan also includes the budget for expected payments and resources required to manage the Fund.

The report highlighted a forecast underspend for service providers and operating expenses for the current financial year, but an overspend against Brunel and custodian charges due to the unbudgeted costs of winding down Brunel. For 2026/27, a transitional period is expected where the Fund will continue to pay for Brunel's operation while also incurring costs for LPPI. The LPPI service charge is noted as being higher than Brunel's due to increased service provision requirements.

Cornwall Pension Fund Update – Investments Part 1

The Committee received an update on the Cornwall Pension Fund's position as at 31 December 2025, including investment performance, asset allocation, and responsible investment activity. The Fund's total market value increased to £2,718 million over the quarter, with a total return of 2.2%, slightly underperforming the benchmark by 0.2%. Equities, Fixed Income, Property, Tactical Asset Allocation Portfolio (TAAP), and the Risk Management Framework all showed positive returns.

A significant development discussed was the transition from Brunel Pension Partnership to LPPI. The Committee approved the Fund becoming a shareholder of LPPI and the orderly transition of assets to LPPI, as well as the wind-down of Brunel Pension Partnership Ltd. This move is in line with the government's 'Fit for the Future' reforms and the deadline of 1 April 2026 for joining a new Pool. The financial implications of these pooling changes, including the annual LPPI service charge and the costs of winding down Brunel, were detailed in the Fund's Budget report.

The report also included updates on responsible investment activities, such as engagement with companies and adherence to the FRC UK Stewardship Code. Brunel's responsible investment progress was highlighted, including reductions in emissions exposures, development of new products, and achievements in renewable infrastructure and stewardship.

Cornwall Pension Fund Business Update – Benefits Team

An update was provided on the activities of the Fund's Benefits Team for the last quarter, detailing ongoing and future business issues. The report covered areas such as membership movements, unprocessed leavers, unclaimed refunds, member self-service, administration workload, death grants, team resourcing, and complaints.

Significant progress was noted in reducing the number of unprocessed leavers. The introduction of the new 'Engage' system for member self-service was highlighted as having a positive impact on Key Performance Indicators (KPIs), enabling quicker processing times and enhanced security. The team also reported that four members of staff had successfully completed their PMI Level 2 Award in Pensions Essentials (APE) qualification, with four others progressing with their PMI Level 3 Certificate in LGPS Administration. No formal complaints were received by the team during the quarter, though numerous compliments were noted.

Cornwall Pension Fund Governance Update Part 1

The Committee received an update on the governance of the Fund, covering various aspects including the Pension Board update, payment of contributions, the Risk Register, and fund attendance and training records. The report indicated that the Fund remains fully compliant with 13 out of 14 chapters of The Pensions Regulator's (TPR) General Code of Practice, with 99% compliance across all requirements. An improvement was noted in the 'Communications and Disclosure: Information to Members' chapter, with the Fund now 92% compliant in this area.

The 2025 Valuation process was nearing completion, with key milestones achieved. Updates were also provided on the Contribution Reviews Policy, Passthrough Policy, and the Policy for Reporting Breaches of the Law, with minor amendments made to the latter to align with regulatory expectations. An update on the government's 'Access and Fairness' consultation indicated that proposed changes would be phased in from April 2026. A review of the Pension Fund Work Plan showed that most tasks were completed, with some governance and responsible investment items deferred to the next financial year due to the 'Fit for the Future' consultation and the change of asset pool.

Brunel Pension Partnership Update

This was the final formal update from Brunel Pension Partnership to the Committee, as the Fund transitions to LPPI from 1 April 2026. A representative from Brunel provided an overview of the Partnership's activities, including the Truro investment in 'Trevow Heights', a development of 31 houses acquired for approximately £8.0 million. The report also detailed the CPI indexation switch consultation for renewable generators, noting a limited impact on the valuation of renewables. A verbal update on 'Project Cornerstone' was provided by a Brunel representative. The report highlighted that Brunel staff continue to deliver 'Business as Usual' activities while a project group finalises transition plans with partner funds and their destination pools. Brunel's responsible investment achievements were also summarised, including significant reductions in emissions exposures, development of new products, and progress in renewable infrastructure and stewardship.

The Committee noted the update and requested any necessary clarifications and further information from officers.

Cornwall Pension Fund Business Update – Part 2 Investments

The Committee considered a Part 2 report providing an update on the Fund's investments, including an update on the underperformance of Gresham House, primarily attributed to the performance of Wildanet. Concerns were raised by members, and officers confirmed further updates would be provided. LPPI representatives gave a verbal update on manager monitoring arrangements. Details of the formal Brunel wind-down, including staff transitions, were also presented. A summary Cashflow Forecast from the Fund's actuary, Hymans Robertson, was presented, outlining different future projections under various scenarios. The Committee noted the detailed position of the Fund as at 31 March 2026 and the Hymans Cashflow Forecast, requesting further clarifications from officers.