The Pensions Committee of Hackney Council met on Monday 30 March 2026 to discuss the 2024-25 Pension Fund Accounts and Audit Outcome Report, the 2025 Triennial Valuation Report, Funding Strategy Statement & Policies, and the London Borough of Hackney Pension Fund Treasury Management Strategy 2026-29. The committee was also scheduled to receive updates on administration and projects.

2024-25 Pension Fund Accounts and Audit Outcome Report

The committee was scheduled to consider the audited 2024-25 pension fund accounts and the unqualified audit opinion. The report presented the financial position of the Pension Fund as at 31 March 2025, detailing income from employer and employee contributions, investment returns, and benefit payments. It also highlighted findings from the external audit by Forvis Mazars, including control issues related to journal testing and disclosure misstatements that were corrected by management. The report noted that the Fund's total assets were valued at £2.1bn at 31 March 2025, with benefit payments totalling £80.642m and contributions received amounting to £85.770m.

2025 Triennial Valuation Report, Funding Strategy Statement & Policies

This report provided the Pensions Committee with the draft 2025 triennial valuation report, including the Rates & Adjustment Certificate, and the Funding Strategy Statement (FSS) post-consultation. The funding level at 31 March 2025 was reported as 138%, an improvement from 106% at the 2022 valuation, primarily attributed to higher assumed future investment returns. The report also outlined the employer contribution rates for the period 1 April 2026 to 31 March 2029, which have reduced on average due to these higher assumed returns. The committee was asked to approve the post-consultation FSS and associated policies, including those on Contribution Reviews, Cessations, Small Employers, and Academies. Projected actuarial cash flows were also presented, indicating a potential shift towards cashflow negativity in the coming years, influenced by reduced contribution rates and increasing benefit outgo.

London Borough of Hackney Pension Fund Treasury Management Strategy 2026-29

The committee was presented with the proposed Treasury Management Strategy for the Pension Fund for 2026-2029. This strategy focuses on managing operational cash balances for daily transactions, such as benefit payments and contributions, with investment cash to be managed by the London CIV. The strategy prioritises the security and liquidity of invested capital over high returns, aligning with CIPFA codes. It outlines the management of cash held in two separate Pension Fund bank accounts and with the Pension Fund custodian, Northern Trust. The strategy also details counterparty review criteria, including credit ratings and macroeconomic indicators, and sets limits on cash held on deposit.

Quarterly Administration and Projects Update

This report provided an update on the Pension Fund's administration performance, including the Pension Administration Service, LGPS regulatory updates, and ongoing Pension Projects. Key points included LPPA's reported performance remaining above its 95% Service Level Agreement (SLA) target, with an average of 99.9% for the quarter. The report also detailed the progress of the data improvement plan, which aims to rectify data gaps identified following the migration from Equiniti to LPPA's UPM system. This plan is expected to enhance the member experience, reduce regulatory risks, and support the Fund's long-term data strategy, with an estimated cost of £134k over three months. Updates were also provided on regulatory changes, including the MHCLG's response to the Access and Fairness consultation, which will extend LGPS access to councillors and mayors in England from 11 May 2026, and the confirmation of annual revaluation, earnings, and pensions increase rates for April 2026. The report also noted the successful connection to the Pensions Dashboard and ongoing data reconciliation activities.

Other items for discussion included:

• Death Grant Policy: The committee was asked to approve a new Death Grant Policy, which aims to ensure discretion over death grant payments is exercised compliantly and transparently.
• Bulk Transfer - Brooke House Sixth Form College to New City College: The committee was asked to approve a bulk transfer payment of £13.5m to the London Pension Fund Authority (LPFA) Fund, following the merger of Brooke House Sixth Form College with New City College.
• Pension Communication for Councillors: A draft communication was presented for approval regarding the extension of LGPS access to councillors and mayors.