The Brent Pension Board met on Monday 23 March 2026 to discuss a range of important updates regarding the administration and governance of the Brent Pension Fund. Key topics included the latest pension administration performance, updates on the Local Government Pension Scheme (LGPS), the Fund's risk register, and the significant outcomes of the 2025 triennial valuation.

Pension Administration Update

The meeting received an update on the performance of the Local Pensions Partnership Administration (LPPA) for the third quarter of the 2025/26 financial year (October to December 2025). Overall casework processing times remained strong, with 98.9% of cases processed on time against Service Level Agreements (SLAs), and no category falling below the 95% target. Helpdesk performance also showed improvement, with an average wait time of just over 3 minutes, and 87.8% of calls answered within 3 minutes. Data quality continued to improve, with common data accuracy at 96.6% and conditional data at 87.0%.

While the overall administration was described as stable, there were specific areas identified for attention, including delays in processing death grants and 1995 scheme deferred pension benefits. The LPPA is working with Brent Council to address these anomalies.

The McCloud remedy project remains flagged as 'amber' due to data and systems functionality challenges, but progress is being made on remedy payments and preparing for the 2025/26 annual benefit statements. The Pensions Dashboard project has successfully connected to the ecosystem, and planning for stage two is underway.

A total of 12 new complaint cases were received during the quarter, a notable increase from the previous period, with the most common trend identified relating to managing member expectations during delays. Brent Council is working closely with LPPA through monthly meetings to monitor performance and enhance service delivery.

Local Government Pension Scheme (LGPS) Update

John Smith, Pensions Manager for Brent Council, provided an update on recent developments within the LGPS regulatory environment. Key points included:

• LGPS Statistics 2024/25: Total expenditure increased by 11.7% to £19.1 billion, while total income rose by 5.2% to £21.7 billion. Employer contributions decreased by 3.9% to £10.1 billion, reflecting advance payments made in the previous year. Employee contributions increased by 5.8% to £3.2 billion. The market value of LGPS funds reached £402.3 billion, a 2.7% increase. Retirements saw a significant rise of 11.2% to 110,678.
• Budget 2025 Changes: Limits will be placed on salary sacrifice schemes for National Insurance contributions relief from April 2029, capped at £2,000 per year. Unused pension funds and death benefits will be included in the estate for inheritance tax purposes for deaths after April 2027, though transfers to spouses are generally unaffected. A mechanism will be introduced to allow personal representatives to direct pension administrators to withhold 50% of taxable benefits for up to 15 months to address potential inheritance tax liabilities.
• Pensions Ombudsman Guidance: New guidance has been issued on recovering pension overpayments, aimed at helping members understand their obligations and potential defences.
• 2026/27 Employee Contribution Bands: Contribution bands will increase by 3.8% (September CPI figure), rounded down to the nearest £100.
• MHCLG Response to Access and Fairness Consultation: Several measures will be implemented from 1 April 2026, including the removal of the age 75 limit for death grants, changes to cohabiting partner nominations, and new rules for qualifying additional pension arrangements (QAPAs) for periods of authorised unpaid leave. Unpaid maternity, paternity, and adoption leave will become pensionable.
• Gender Pensions Gap: Actuarial guidance on reporting the gender pensions gap for the 2025 valuation has been issued, with more complex reporting expected from 2028.
• Fit for the Future Consultations: Two consultations have been launched regarding reforms to the LGPS, focusing on pooling, investment, and governance arrangements. Brent has submitted a response to these consultations.
• Access and Protections Consultation: A partial response has been issued focusing on elected members, confirming their access to the LGPS from 11 May 2026, requiring opt-in rather than auto-enrolment.

Risk Register

The Pension Board received an update on the Brent Pension Fund's Risk Register. Key changes highlighted included general updates to reflect the successful Pensions Dashboard connection and progress on the McCloud Remedy implementation. Risks related to changes in legislation and guidance, particularly concerning upcoming changes to councillors' pensions and other scheme regulations, have been updated. The register also reflects the end of the triennial valuation cycle and the investment strategy review. Inflation remains a significant risk, with a high likelihood and impact score, influenced by the current geopolitical situation.

The Board noted that risk scores have been reviewed for appropriateness, and some risks have been re-categorised. The register now includes a column showing the movement of risks over time, and officers are considering broadening the scope to include more explicit references to climate-related and other systemic risks.

Training Update

All Pension Board members have completed their required training modules on the LOLA platform, provided by Hymans Robertson. A refresher training course will be provided by Hymans Robertson after the local elections in May, with further updates to follow later in the year.

Investment Strategy Review

The Pension Fund Sub-Committee reviewed the Investment Strategy Review undertaken by Hymans Robertson, following the 2025 valuation. The review recommended a reduction in exposure to growth assets and an increase in protection assets. Key proposals include:

• Reducing the allocation to global equities and increasing allocations to private equity and natural capital to support local investment initiatives and climate objectives.
• Increasing the allocation to income assets, specifically infrastructure and property, while reducing the allocation to multi-asset funds.
• Increasing the allocation to protection assets, particularly fixed interest gilts and multi-asset credit.

The Fund will work with the London CIV (LCIV) for the implementation of the new investment strategy from April 2026. An earmarked portfolio of liquid assets (equities, bonds, and cash) will be established to fund future private markets investments.

Investment Monitoring Report - Q4 2025

The Fund reported positive returns for the second half of the 2025-26 financial year, ending with a valuation of £1.49 billion, up from £1.36 billion in June 2025. Global equities performed strongly, driven by UK and emerging markets equities. The Fund's passive global equity mandates were the main contributors to positive returns. Overall, the Fund achieved a return of 9.4% over the half-year, outperforming its benchmark by 0.5%. A new allocation to the Legal and General Future World Index Fund was implemented, which will reduce the Fund's carbon emissions.

2025 Triennial Valuation Results and Funding Strategy Statement

The results of the 2025 triennial actuarial valuation show a significant improvement in the Fund's funding position, rising from 87% in 2022 to 113% as of 31 March 2025. This surplus means that employer contribution rates for most employers will be cut from 30.5% to 23% from April 2026. The report also considered the Funding Strategy Statement, which outlines how the Fund manages its assumptions and principles during the valuation process. Following consultation, the Funding Strategy Statement was approved.

LAPFF Update

The Board received an update on the engagement activities undertaken by the Local Authority Pension Fund Forum (LAPFF) on behalf of the Fund. Key engagements included:

• Water Stewardship: Discussions with UK water utilities regarding storm overflow pollution and regulatory reforms, and with Coca-Cola regarding its water strategy and ESG commitments.
• Executive Remuneration: Engagements with companies like Prysmian, Infineon, Genmab, and Besi to address shareholder concerns over executive pay structures and alignment with long-term value creation.
• Nature & Biodiversity: Continued engagement with companies on their commitments to mitigate nature loss and improve disclosures, including meetings with Pfizer and discussions with companies like Bunge and Heidelberg Materials regarding their environmental impact.
• Conflict Affected and High-Risk Areas (CAHRAs): Engagements with banks (NAB, ANZ, CBA) and oil and gas companies (Eni, TotalEnergies) regarding human rights due diligence in high-risk regions.
• Consultation Responses: LAPFF submitted a response to a consultation on UK Sustainability Reporting Standards, raising concerns about the restrictive nature of the decision-useful premise.

Date of Next Meeting

The provisional dates for the next Pension Board meetings were noted: Tuesday 21 July 2026, Thursday 5 November 2026, and Monday 22 March 2027.

The meeting concluded with thanks to the officers for their support and a formal acknowledgement of Councillor Kabir's long service to the board.