Agenda and minutes

Apologies of absence were received from Robert Wheeler (Member Representative – GMB) & Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance & Resources)

Members are invited to declare at this stage of the meeting, any relevant disclosable pecuniary or personal interests in the items on the agenda and to specify the item(s) to which they relate.

David Ewart (as Independent Chair) declared a personal interest as a member of CIPFA.

No further declarations were made during the meeting.

To approve the minutes of the previous Pension Board meeting held on Monday 24 March 2025 as a correct record.

The minutes of the previous meeting held on Monday 24 March 2025 were AGREED as an accurate record.

To consider any matters arising from the minutes of the previous meeting.

Min 5: Deputation: Update on Pension Fund approach towards Responsible Investment

None.

This report updates the Pension Board on various pension administration

matters as part of its remit to oversee administration of the Brent Pension

Fund.

John Smith (Pensions Manager, Brent Council) was then invited to introduce a report, which updated the Pension Board on various pensions’ administration matters as part of its remit to oversee the administration of the Brent Pension Fund.

The Board was advised that the update included a review of performance against agreed Service Level Agreements (SLAs) for Q4 2024-25 (1 January 2025 to 31 March 2025) with a brief overview provided on Fund membership, which as of 31 March 25 comprised 6,730 active members, 10,260 deferred members and 7,685 pensioner and dependant members.  The Board’s attention was drawn to the maturing nature of the age demographic for Fund Members with 56% of working age members over 45 and 49% of the 35-60 age cohort for deferred members being over 50.

In focussing on overall performance during Q4 the Board was advised that performance had remained high overall with 98.6% of all case types being processed meeting contractual SLA targets as detailed in section 3.4.6 of the cover report.  The Fund’s perception was that the service had stabilised with it noted that none of the case types had fallen below SLA (95%) and Figure 2 in the cover report providing detail on the number of cases that had been processed grouped by category.  Members also noted the Case Work Performance table, within section 3.4.8 of the cover report which compared number of cases completed to the number of cases received and was felt to provide a more complete overview of performance.

Following introduction of the report, the Chair welcomed Chris Batts from LPPA, the Council’s administration service provider, who provided a further detailed update regarding recent pensions administration performance, summarised below:

·            Members were informed that overall, operational casework performance remained positive for Q3 with a performance average of 98.6% against SLAs with a more detailed outline provided as part of the Case Work Performance table and fluctuations in case work being received over the year as a result of various triggers including regulatory and statutory deadlines during relevant reporting periods and the monthly data return process, new joiners, payment queries and deferrals as well as the focus on migration of Brents Pension Payroll.

·            In terms of LPPA contact centre calls performance, the average wait time remained under the target of 4 minutes, with an average wait time over Q4 of 3 minutes 22 seconds which was recognised as being 52 seconds longer than the previous quarter with 69% of the calls received being answered within 4 minutes.

·            Progress continued to be made in terms of employer retirement notifications, with enhanced monthly return timeliness and improvements in retirement notification periods. Whilst not currently subject to an SLA, LPPA aim remained to pay retirees within 30 days of their leaving the service. This was in recognition of LPPA’s need to provide a seamless transition without gaps, so as to avoid a break between salary and pension payments. To do this, it was noted that the employer notification of staff members’ retirement was key in  ...  view the full minutes text for item 5.

To receive the Chair’s Annual Report for 2024-25 providing an update on the work carried out by the Board during the year.

David Ewart (as Chair) introduced the Annual Report to the Pension Board, providing an update on the Board's work during 2024-25.

In introducing the report, the Chair highlighted the work of the Board as it related firstly to the review of investment activity and secondly to the performance of the pension administration function with additional roles in relation to risk management and the use of other discretionary powers.  In terms of the review of investment activities, it was recognised whilst this had taken up a  smaller part of the Board’s time, given the remit of the Pension Fund Sub Committee in this respect, members had continued to receive regular investment updates and been in general agreement with the action being taken by the Sub Committee including the move to the revised asset allocation, socially responsible investment and the steps towards low carbon investment as well as collective engagement on wider environmental, social and governance (ESG) issues in terms of the Fund’s investments with members mindful of their duty to effectively scrutinise the investment activity of the fund.

In terms of Pension Administration, the Board had taken the lead in scrutinising the performance of the Fund’s pensions administration partner Local Pensions Partnership Administration (LPPA), with the Board continuing to monitor those areas identified as not meeting SLA targets as well as general levels of performance and a focus on some of the most sensitive activity such as dealing with retirement from active membership and death in service, the level of service to Fund members and the quality of data held, although the need to maintain ongoing and continuous improvements had been recognised.

Whilst 2024-25 year had been a busy year and the Board remained aware of the areas for improvement highlighted it was also felt to have been an encouraging year for the Fund, despite the increasing risks and pressures identified, with the funding level continuing to improve and investment returns remaining strong, on an absolute basis, although slightly underperforming relative to the Fund’s benchmark and a slow but general improvement in the performance of the pension administration function (with some areas of challenges remaining).

In concluding the presentation of the Annual Report, the Chair also took the opportunity to thank all the Board members and supporting officers for their efforts and ongoing support, with members also taking the opportunity to formally thank the Chair for this role in conducting and managing the Board meetings.

Following the update provided by the Chair members were invited to raise any comments with the following issues highlighted:

·            In raising the ongoing absence of an employer’s representative position on the Board, members sought details on progress in filling the position. Sawan Shah (Head of Finance Pensions and Housing Companies) responded that having undertaken an unsuccessful recruitment process at the start of 2025 (given the low level of engagement received) officers were now exploring options to promote better interest in the position in advance of a further recruitment process being undertaken following the school summer holiday  ...  view the full minutes text for item 6.

The purpose of this report is to update the Board on recent developments within the Local Government Pension Scheme (LGPS) regulatory environment and any recent consultations issued which would have a significant impact on the Fund.

John Smith (Pensions Manager, Brent Council) introduced a report from the Corporate Director Finance & Resources that updated the Board on recent developments within the Local Government Pension Scheme (LGPS) regulatory environment along with recent consultations issued which were likely to impact on the Fund.

In terms of key updates, the following issues were highlighted:

·            Consultation on the Local Government Pension Scheme England and Wales; Access and Fairness – In May 2025, the Ministry of Housing, Communities and Local Government (MHCLG) published its LGPS Access and Fairness consultation (attached as Appendix 1 to the report) which was focussed on promoting equal access to the LGPS scheme in terms of its benefits and fairness.  The consultation was due to close on 7 August 2025 and was felt to provide an opportunity for a comprehensive review of existing Pension Regulations.  Further detail was provided on the key areas covered within section 3.2 of the report which included:

Ø   The proposal is to equalise the survivor pension entitlement of all members, regardless of the sex of the eligible member or their survivor, and to update regulations on survivor benefits and death grants.

Ø   The proposal to amend the Benefits Regulations to formally remove the nomination requirement for all deaths that occurred between 1 April 2008 and 31 March 2014.

Ø   The proposal to amend the 2013 Regulations to remove reference to an age 75 limit on eligibility for death grant payments, and to amend the 2014 Regulations to disapply the age 75 limit on death grants for individuals to whom the rules of the previous schemes continue to apply and who had died on or after 1 April 2014.

Ø   The removal of the requirement to pay death grants to the personal representatives once two years had elapsed after the administrators became aware of the death,

Ø   The proposal to align the cost of buying back authorised unpaid leave over 30 days with standard member contribution rates.

Ø   The proposal to update the definition of child-related leave to include all periods of additional maternity, adoption and shared parental leave without pay.

Ø   The proposal to monitor and report on opt-outs.

Ø   Proposals intended to make the forfeiture process work better and address known issues with current regulations.

Ø   The proposal to extend de-minimis (special type of trivial commutation) payments commutation to pre-2008 leavers.

Ø   The proposal to offer pre-2014 leavers the option to use their additional voluntary contributions (AVCs) to buy additional LGPS pension if they crystallise their AVCs at the same time as their deferred benefits.

Ø   The proposal to remove the five-year limit for refunds.

Ø   The proposal to limit short-term child’s pensions under the 1995 and 1997 Regulations (pre-2008 leavers).

Taken overall, whilst noting the aim underpinning the proposed changes in seeking to advance access and fairness it was pointed out that many of the proposals were also necessary to ensure compliance with the law.

·            In concluding his update, John Smith drew members' attention to a recent ombudsman decision concerning Mr  ...  view the full minutes text for item 7.

This report presents the updated Risk Register for the Brent Pension Fund Administration Service.

George Patsalides (Finance analyst, Brent Pension Fund) introduced a report from the Corporate Director Finance & Resources, presenting the updated Risk Register for the Brent Pension Fund Administration Service.  In considering the report, members noted the updated Risk Strategy (attached as Appendix 2 to the report) and key changes made to the Risk Register (attached as Appendix 1 to the report) since the previous update which included:

·            Item 1.1 Business Continuity – the update of supporting commentary.

·            Item 2.3 Cyber Security – the update of likelihood and risk score along with supporting commentary.

·            Item 3.2 Record Keeping – the update of the supporting commentary to reflect recent data cleanse activity.

·            Item 3.5 Pensions Payroll Migration – the update of supporting commentary to reflect recent activity which had also led to a change in the likelihood and risk score following the successful transfer of the payroll service.

·            Item 3.6 Re-enrolment – the update of likelihood score and supporting commentary.

·            Item 4.2 Annual Benefit Statements – the update to the risk area and supporting commentary.

·            Item 4.52 Admission agreements – the update of supporting commentary.

·            Item 5.4 Governance – the update of supporting commentary and controls.

·            Item 5.6 Data Protection breaches – the update of supporting commentary.

·            Item 6.2 Geographical and economic risk in relation to investments – risk outline and commentary updated.

·            Item 6.11 Ability of Fund’s Assets to meet Long Term Liabilities – the update of supporting commentary.

·            Item 6.3 Impact of McCloud judgement on Long Term Liabilities – the update of supporting commentary.

·            Item 6.5 Annual Audit - the update of supporting commentary.

In thanking George Patsalides for the overview and commending the quality of the register and comprehensive nature of the update provided the Chair welcomed comments from Board members. Contributions, questions, and responses were as follows:

·            Details were sought on the risk considerations identified in relation to the outcome of the Governments “Fit for Future” consultation in relation to the implementation of pooled funding arrangements for the Fund and local investment requirements.  Whilst acknowledging the inherent risk identified members were advised the main purpose of the proposed changes had been to make the LGPS more streamlined and efficient with the Government seeing the potential benefits as outweighing potential risks in the intermediate term.  As further assurance, Sawan Shah (Head of Finance Pensions and Housing Companies) felt it important to recognise that under the arrangements the Fund’s strategic investment strategy would remain under the control of Brent’s Fund. Once asset allocation, such as equities, bonds, property, cash or infrastructure, had been decided the investment pools would manage the execution of this investment on Brent’s behalf, receiving oversight from the Pension Board and Brent Pension Fund Sub-committee.

·            Referring to the update on recent data cleanse activity under item 3.2 Record Keeping within the Risk Register details were sought on progress with the data cleanse process in advance of the Fund valuation and post payroll migration.  In response, the Board was advised that areas critical to the successful migration had been  ...  view the full minutes text for item 8.

The purpose of this report is to inform members of the Pension Board and

provide an update on the provision of the LGPS Online Learning Facility.

George Patsalides (Finance Analyst, Brent Pension Fund) introduced the report, which provided an update on the provision of the Local Government Pensions Scheme (LGPS) online pensions learning facility. 

As context, members were reminded that as part of the Fund’s Training Strategy, all those involved in the governance of the Fund were expected to be able to evidence they had the knowledge, skills and commitment to carry out their role effectively.  In order to support members in meeting this requirement, the Fund had subscribed to the LGPS Online Learning Academy (LOLA), which included eight modules designed specifically for the Pension Fund Sub Committee and Board Members, with progress by members in terms of the completion of each module set out within section 3.7 of the report.

In reviewing the progress made, the Board noted the training plan had been adapted to accommodate new members of the Board with the updated plan and timescales for completion of the required modules detailed within Appendix 3 of the report.  Recognising the increased focus on the training of members involved in overall strategic direction of local authority pension funds included as part of the Regulator’s new code of practice and within the Fit for Future proposals, and need for this to be formally documented, members were encouraged to ensure they completed the required modules in line with the updated plan with officers advising members requiring support to contact them for assistance. 

Having thanked officers for the update, the Board RESOLVED to note the report and support the continued learning programme as outlined within the training timetable.

Before moving on to the remaining items on the agenda the Chair reminded Board members that agenda items 10, 11 and 12, 13. 14 & 18 were reports referred to the Pension Board for information following their consideration at the Brent Pension Fund Sub Committee on 24 June 2025.

To receive the Brent Pension Fund  Q1 2025-26 Investment Monitoring Update Report.

Sawan Shah (Head of Finance, Brent Council) introduced the Brent Pension Fund Investment Q1 2025 Investment Monitoring Update.  In terms of key highlights the Board was advised in relation to total Fund performance that the Fund had posted a negative return over the quarter, ending the period with a valuation of £1,310.1m, down from £1,335.8m at the end of Q4 2024.  The Fund’s passive global equity mandates were identified as the main contributors to negative absolute returns over the quarter. UK government bonds had also detracted, as rising gilt yields led to a fall in their value. In contrast, UK equities had delivered positive returns during the period.  On a relative basis the Fund had underperformed its benchmark by 0.1%. The Fund was also behind its composite benchmark over the past 12 months and over 3 years with members noting the current target and asset allocations exposure on an interim and long-term basis across growth, income/diversification and protection plus cash and reflecting the Funds Investment and diversification Strategy.  Cash held by the Fund had had decreased slightly over the period to £63.6m.  Whilst US tariffs on imports had led to material falls in equity valuations during April it was noted markets had since largely recovered.

The Monitoring Update also included details on the Fund’s Asset Allocation, which it was noted remained broadly in line with the overall Investment Strategy with the funding level estimated to be 131% in advance of the current 2025 valuation being completed.

Performance relating to Fund Managers was also outlined, with members advised that the portfolio had delivered a return of -1.6% over the first quarter of 2025 to 31 March, underperforming its benchmark by 0.2%. While performance over the past 12 months and 3-year periods remains strong on an absolute basis, returns had continued to lag the benchmark over both timeframes.  After a period of strong gains, global equities had posted negative returns in Q1 2025 with UK equities the only growth asset class to have delivered a positive return during the quarter. In contrast, emerging market funds had declined and underperformed their respective benchmark.  It was noted that the decline in global equities had been driven by renewed tariff-related uncertainty, which had weighed on investor sentiment. As a result, market participants had rotated out of high-valuation US technology stocks in favour of lower-valued names, leading value stocks to outperform growth with US equities having experienced their weakest quarterly performance since 2022, contributing significantly to the broader market decline.  Members were advised the property and infrastructure markets had also delivered mixed performance over the period. Property allocations had performed well on an absolute basis, while infrastructure performance had been more varied.

The Board was advised that update provided for the Sub Committee had also included an update on events following the 31^st of March 2025 and imposition of US Tariffs in relation to the impact on global equity markets. Whilst the immediate impact had been swift, with equity markets falling by 10-15% the market  ...  view the full minutes text for item 10.

The purpose of this report is to update the committee on the outcome of the Government’s Fit for the Future consultation.

Sawan Shah (Head of Finance, Brent Council) introduced a report from the Corporate Director Finance & Resources, outlining the outcome of the Government’s Fit for the Future consultation.

The Board was advised that in July 2024, the Chancellor had launched the UK Pensions Investment Review, which included proposals to improve the scale and efficiency of the UK’s defined contribution (DC) pension schemes and the LGPS. In November 2024, the Government had published its Fit for the Future consultation which included proposals in three key areas of the LGPS, namely to reform asset pooling, boosting investment in local areas of the UK, and strengthening the governance of administering authorities and LGPS pools.  Following this, the Government had published its final report on the UK Pensions Investment Review and its response to the Fit for the Future consultation and confirmed the decision to move ahead with the core proposals, setting out the final policy measures on pooling, local investment and fund governance.

In terms of the key areas highlighted for the Sub Committee the Board were advised these had related to:

·            The implementation of pooling arrangements, with the London CIV having been confirmed as the designated pooling entity for the 32 London boroughs.  All pools had been required to submit transition plans to demonstrate how the proposed minimum standards could be met. Of the 8 regional pools originally identified, only 6 pool plans had been accepted with the government having concluded that proposals from the ACCESS and Brunel pools did not align with its vision for the future of the LGPS.  It was confirmed that this would not impact on the London CIV.

Funds would continue to set their individual investment strategy, with implementation being delegated to their respective pools. To facilitate this, members were advised pools would be required to develop in-house investment management and advisory capabilities, with a view to establishing themselves as investment managers (and therefore be authorised and regulated by the FCA).  Despite opposition to the proposals, it had been agreed that pools would therefore be mandated to provide partner funds with principal advice on their investment strategies and whilst Fund’s would be able to procure advice from other sources, it was expected this would only be under exceptional circumstances.  Whilst the Government had originally proposed that all listed assets should be transferred to pooled vehicles by March 2026, with remaining legacy illiquid assets included, this had now been relaxed with the Government having stated that not all assets would need to be invested through a pool’s own funds (reflecting concern that it would not always make financial sense to transfer passive assets into a pool) but with the preference and default position remaining investment through a pool’s own funds.

·            The Government had also taken the opportunity to reiterate its encouragement for the LGPS to increase its investment exposure in the UK, with particular focus on exploring local investment opportunities covering areas which were broadly regional to the pool and its partner funds.  For the Brent Pension Fund, this  ...  view the full minutes text for item 11.

This report presents the draft Pension Fund Annual Accounts for the year ended 31 March 2025.

George Patsalides (Finance Analyst, Brent Council) introduced the report from the Corporate Director Finance and Resources, presenting the draft Pension Fund Annual Accounts for the year ending 31^st March 2025.

In noting the indicative draft audit plan for the 2024/25 accounts, as detailed within Appendix 2 of the report and draft Pension Fund Annual Accounts for the year ended 31 March 2025, as detailed in Appendix 1 of the report members were advised that during 2024-25, the value of the Pension Fund’s investments had increased to £1,310m (2023/24 £1,259m) with the Fund’s passive global equity exposure identified as the main driver of positive returns, along with its allocation to UK equities. The main detractor from performance was the Fund’s government bond exposure, which had fallen in value as gilt yields rose over the period with the Fund remaining in a positive cash-flow position because its contributions exceed its outgoings to members.

In terms of the next steps for the year-end accounts, members were advised that work had now commenced on the external audit process with no unforeseen issues having been identified, to date, in relation to the Pension Fund and work underway to prepare the Pension Fund Annual Report in advance of the Boards scheduled meeting in November 25.

Officers were commended for their work to complete the draft accounts and in noting that the report had been subject to detailed review at the Brent Pension Fund Sub Committee on 24 June 2024 the Board RESOLVED to note the Draft Pension Find Statement of Accounts and Audit Plan 2024-25.

To present members with an update on engagement activity undertaken by the Local Authority Pension Fund Forum (LAPFF) on behalf of the Fund.

The Board received a report providing an update on the engagement activity undertaken by the Local Authority Pension Fund Forum (LAPFF) on behalf of the Fund, as detailed with the Q2 LAPFF Engagement Report included as Appendix 1 to the cover report. 

In noting that the report had been subject to detailed review at the Brent Pension Fund Sub Committee on 24 June 2025 the Board RESOLVED to note the report and update on LAPFF engagement activity.

The purpose of this report is to update the committee on the 2025 Triennial Valuation and to introduce the report from the Fund Actuaries (Hymans Robertson) on the key assumptions.

Sawan Shah (Head of Finance, Brent Council) introduced a report from the Corporate Director Finance & Resources, which provided an update on the 2025 Triennial Valuation.

In providing a brief overview of the report, the Board was advised that a formal valuation of the whole Fund was undertaken every three years with the purpose being to compare actual experience against assumptions made at the last valuation; value the assets and liabilities of each individual employer and the pension fund as a whole using data from the Fund’s administration system and financial records; set employer contribution rates, including for the Council, for the next 3 years (1 April 2026 to 31 March 2029); review the Funding Strategy Statement (FSS) and also perform a health check on the Fund’s solvency. Members were reminded that the previous valuation had taken place in March 2022 with the current valuation process to be carried out as at 31 March 2025 and the results being reported to the administering authority within twelve months of the valuation date.

Members were advised that the Pension Fund Sub Committee, when considering the report had been provided with a detailed presentation by Craig Alexander (Hymans Robertson Partner and Fund Actuary) on the key inputs and assumptions identified as the basis for undertaking the 2025 valuation, as had been set out in Appendix 1 of the report.  Members were advised that the assumptions had been designed to reflect both current market conditions and long-term expectations as well as being benchmarked against industry standards and LGPS-wide trends to ensure consistency and prudence with an outline of the key assumptions as follows:

·            the level of prudence & Future Investment Returns (Discount Rate) leading to the recommended increase in prudence level from 73% to 80% for the 2025 valuation.  In general, it was stated that Pension Funds were expected to be prudent, with most funds currently moving to minimum targets of 70%-80% or above. This was even more so the case following the recent global developments and whilst the decision was noted to be subjective to individual Funds’, an established process was expected to be put into place for the purposes of good governance.

·            Benefit & Salary Increases leading to the recommendation that the same approach be adopted for the 2025 valuation as in 2022, reflecting the current inflationary environment.

·            the recommended continue use of the tailored Club Vita assumptions in terms of longevity and adoption of the overall Club Vita LGPS future improvement assumption with other demographic considerations and assumptions based on analysis of the Fund’s actual membership experience.  An example was provided in relation to operation of the longevity assumption with figures updated annually.

The Board was advised that a summary of the key assumptions recommended for adoption in relation to the 2025 valuation process as compared to the 2022 valuation along had been provided within Appendix 2 to the main report, which it was noted had been classified as exempt and contained further background on the basis on which the assumptions had been developed.  ...  view the full minutes text for item 14.

Notice of items to be raised under this heading must be given in writing to the Deputy Director Democratic & Corporate Governance or their representative before the meeting in accordance with Standing Order 60.

None.

Members are asked to note the schedule of meetings for the 2025-26 Municipal Year:

·               Thursday 6 November 2025 to be held at 6pm as an online meeting.

·            Monday 23 March 2026 to be held at 6pm as an online meeting.

NOTED the dates of the remaining Pension Board meetings for the 2025-26 Municipal Year, as follows:

• Thursday 6 November 2025 at 6:00pm
• Monday 23 March 2026 at 6:00pm

The following items are not for publication as they relate to the category of exempt information set out below, as specified under Part 1, Schedule 12A of the Local Government Act 1972:

Agenda Item 6:     Q1 2025-26 Investment Monitoring Report – Appendix 2: Fund Manager performance ratings.

                            This appendix has been classified as exempt under Paragraph 3 of Part 1 Schedule 12A of the Local Government Act 1972, namely: “Information relating to the financial or business affairs of and particular person (including the authority holding that information).”

Agenda Item 11:   2025 Triennial Valuation – Appendix 2: Detailed Assumptions Advice

                            This appendix has been classified as exempt under Paragraph 3 of Part 1 Schedule 12A of the Local Government Act 1972, namely: “Information relating to the financial or business affairs of and particular person (including the authority holding that information).”

The press and public will be excluded from the remainder of the meeting as the report(s) to be considered contain the following category of exempt information as specified in Paragraph 3, Schedule 12A of the Local Government Act 1972, namely:

“Information relating to the financial or business affairs of any particular person (including the authority holding that information)"

At this stage in the proceedings, the Pension Board was asked to consider whether they wished to exclude the press and public for consideration in the final report on the agenda. Given that the following item had been submitted for information and could be considered without the need to disclose any information classified as exempt, it was RESOLVED not to exclude the press and public from the remainder of the meeting.

The meeting then continued in open session.

This report provides an update on recent developments regarding Brent’s Pension Fund investments held with the London CIV.

The Board received and RESOLVED to note, without further comment, a report that provided an update on recent developments regarding Brent Pension Fund investments held within the London CIV.