Pensions Committee - 17 September 2026

The meeting began with the approval of the minutes from 18 June 2026. The Committee then received an investment update from LPPI and officers, which highlighted increased market volatility driven by the Middle East conflict, geopolitical factors, inflation, and developments in artificial intelligence. Officers clarified that the inflation figure applied to pension increases would be based on October’s data, and that the Fund’s diversified portfolio mitigated concentration risk. In response to questions, officers confirmed that the Fund’s exposure to oil and fossil fuels was limited, with some energy companies having significant renewable investments. The annual carbon metrics report was noted as the mechanism for monitoring climate-related objectives. Officers also agreed to provide a breakdown of geographic classifications under the ‘Americas’ category.

The Fund’s actuary presented the interim funding position. The investment return target of 6.2%, set at the 2025 valuation, had not been achieved in the prior period, but the overall strategy was considered appropriate and ahead of target, requiring no significant changes. The actuary noted that the discount rate assumption had been revised downwards due to market conditions, and that market movements were monitored monthly.

On administration, the Committee reviewed quarterly activity data. Officers explained that outstanding tasks represented a running total, with cases carried over from previous periods. A reported error in transfer quote requests was attributed to duplication during a system migration, with no wider data concerns. Delays in transfer cases were largely external, including a stockpile of calculations while the Local Government Association awaited updated factors from the Government Actuary’s Department. Officers also addressed a complaint received since the last meeting, which was currently under review with the related employer. The Committee noted that the Firefighters’ Pension Scheme data was not included in the report.

The governance update included a work plan for complying with new statutory guidance from the Ministry of Housing, Communities and Local Government. The Committee recommended that the Constitution and Governance Committee approve proposed amendments to the Council’s Constitution. Officers reported no concerns about training attendance, and noted that a formal knowledge assessment process was being developed. Preparations for the actuarial tender were underway, with volunteers sought for interview panels in February. The Committee also noted the Overpayment of Pension Policy, which applies a de minimis threshold of £250 for recovery.

LPPI provided an update on the partnership, including the proposed UK Scale-Up Fund, with participating funds collectively committing up to £1 billion. Individual fund allocations were not yet determined, and the Cornwall Pension Fund’s commitment would depend on the final structure. It was clarified that the fund would seek UK-wide investment opportunities, with separate arrangements for local investment in Cornwall. The Committee then resolved to move into a private session under Section 100A(4) of the Local Government Act 1972 to consider exempt information on financial or business affairs. In Part 2, the Committee noted an update on the underperformance of Gresham House, recent investment activity in the PGIM Affordable Housing Fund and Gresham House British Sustainable Infrastructure Fund II, and the formal wind-down of Brunel Pension Partnership.