Agenda item

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 presenting the report members were advised that while the statutory deadline for publication of the draft accounts had been 30 June 2025, the Pension Fund accounts were now expected to be published by 18 July 2025. This revised timeline reflected delays arising from matters identified during the audit of the Council’s core financial statements. Although these matters were not directly related to the Pension Fund, they had a consequential impact on the timing of the accounts publication although this was not expected to affect the timing of the Pension Fund audit, which had been scheduled to commence in July.

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, the following main issues were highlighted for members:

• 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.

·            Total contributions received from employers and employees had been £73m for the year, an increase on the previous year’s £69m.

·            Total benefits paid to scheme beneficiaries, in the form of pensions or other benefits, were £60m, an increase on the previous year’s £52m.

·            As in 2023/24, the pension fund remained 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 preparation of the Pension Fund Annual Report which was due to be presented to the Sub Committee at the next meeting.

Following the update, the Chair invited members to raise any comments with the issues summarised below:

·       Details were sought as to whether the audit process was expected to include any hot review, which officers confirmed was not anticipated during the current audit process and an assurance provided in relation to the availability and provision of supporting information in response to external audit activity in order to ensure the review could be progressed within required timescales.

·       In response to a specific query, further clarification was provided on the net return and liabilities figures identified in the draft Statement of Accounts with details also provided on the impact of the triennial valuation process on the overall Pension Fund assessment as it primarily related to the Funds cash flow position.  Members were advised that valuations were dependent upon the assets held within the fund's investment portfolio.

With no further issues raised and in thanking the Finance team for their work regarding the funds management, the Committee RESOLVED to note the Draft Brent Pension Fund Year End Accounts 2024-25.