Agenda and minutes

To confirm the minutes of the meeting held on 09 September 2025.

The minutes of the meeting held on 09 September were confirmed and signed.

To disclose any pecuniary, other registrable or personal interest as set out in the adopted Code of Conduct.  In making their decision councillors are asked to state the agenda item, the nature of the interest and any action they propose to take as part of their declaration.

If required, further advice should be sought from the Monitoring Officer in advance of the meeting.

No declarations of disclosable pecuniary interests were made at the meeting.

Representatives of town or parish councils and members of the public who live, work, or represent an organisation within the Dorset Council area are welcome to submit either 1 question or 1 statement for each meeting.  You are welcome to attend the meeting in person or via MS Teams to read out your question and to receive the response.   If you submit a statement for the committee this will be circulated to all members of the committee in advance of the meeting as a supplement to the agenda and appended to the minutes for the formal record but will not be read out at the meeting. The first 8 questions and the first 8 statements received from members of the public or organisations for each meeting will be accepted on a first come first served basis in accordance with the deadline set out below.  Further information read Public Participation - Dorset Council

All submissions must be emailed in full to [email protected] by 08:00am on Thursday 27 November.

When submitting your question(s) and/or statement(s) please note that:

·       You can submit 1 question or 1 statement.

·       A question may include a short pre-amble to set the context.

·       It must be a single question and any sub-divided questions will not be permitted.

·       Each question will consist of no more than 450 words, and you will be given up to 3 minutes to present your question.

·       When submitting a question please indicate who the question is for (e.g., the name of the committee or Portfolio Holder). 

·       Include your name, address, and contact details.  Only your name will be published but we may need your other details to contact you about your question or statement in advance of the meeting.

·       Questions and statements received in line with the council’s rules for public participation will be published as a supplement to the agenda. 

·       All questions, statements and responses will be published in full within the minutes of the meeting.   

One question, together with the response from the Chair of the Pension Fund Committee, is set out in the appendix to these minutes.

To receive questions submitted by councillors.

Councillors can submit up to two valid questions at each meeting and sub divided questions count towards this total. Questions and statements received will be published as a supplement to the agenda and all questions, statements and responses will be published in full within the minutes of the meeting.

The submissions must be emailed in full to [email protected] by 08:00 on Thursday 27 November.

Dorset Council Constitution – Procedure Rule 13

There were no questions from councillors.

To consider any items of business which the Chairman has had prior notification and considers to be urgent pursuant to section 100B (4) b) of the Local Government Act 1972. The reason for the urgency shall be recorded in the minutes.

There were no urgent items.

To consider the quarterly report on pension fund administration.

Performance against Key Performance Indicators (KPIs) continued to be good. Performance for the top ten cases improved compared to the previous quarter, despite an increase in the total number of processes completed.

All active scheme employers had been sent their 2025 Valuation results schedule in November. The schedules set out the funding position and proposed employer contribution rates for the next three years.

The pension fund had successfully completed phase two of the Pensions Dashboard implementation in early October. This phase included the configuration of the live database in preparation for system connectivity.

Work had been ongoing to verify member eligibility under the McCloud judgement. McCloud deliverables are scheduled for completion in quarter two of 2026.

The pension fund had engaged Target Professional Services (UK) Ltd to conduct the 2025 mortality screening for overseas pensioners.

The Department for Ministry for Housing, Communities and Local Government (MHCLG) had launched a ‘Scheme improvements (access and protections)’ consultation to address fairness, access and efficiency within the Local Government Pension Scheme (LGPS). The consultation is due to close on 22 December 2025.

To approve the draft Funding Strategy Statement for consultation.

LGPS regulations require administering authorities to prepare and maintain a Funding Strategy Statement (FSS) which explains how the administering authority plans to make sure the pension fund has enough money to pay pensions when they fall due.

The pension fund’s Funding FSS had been updated to reflect the draft results of the latest triennial actuarial valuation as at 31 March 2025 and the most recent guidance issued by the LGPS Scheme Advisory Board (SAB) in January 2025. A consultation with scheme employers and other key stakeholders will be carried out before the final version of the FSS is considered for approval by the Committee in March 2026.

Decision

The Committee approved the draft FSS for consultation.

To approve the Pension Fund Annual Report 2023/24 for publication.

The pension fund annual report includes in one place key information regarding the management, administration and investment performance for the year, the financial statements for the year and key governance, administration and investment strategy documents.

The report of the independent auditors regarding the pension fund annual financial statements had not yet been finalised. It was therefore recommended that the annual report be published as draft. The auditors have reported that their work is substantially complete, they have not identified any adjustments that impact on the Pension Fund’s reported financial position and only disclosure misstatements and changes have been identified.

Decision

That the draft Pension Fund Annual Report 2024/25 be published.

To consider the quarterly report on the value and performance of the pension fund’s investments.

The value of the pension fund’s assets at 30 September 2025 was just over £4.4 billion, an increase of £335m since the start of the financial year. The total return from the pension fund’s investments over the quarter to 30 September 2025 was 4.9%, compared to the combined benchmark return of 6.1%. The total return for the year to 30 September 2025 was 10.1% compared to the benchmark return of 14.0%.

Most asset classes recorded positive returns in the quarter but there were concerns that the valuations of some companies overstated the future benefits of Artificial Intelligence (AI) and that this could lead to significant downward corrections in prices.

On 20 November 2025, MHCLG launched a consultation to seek views on whether two draft statutory instruments “will effectively deliver the policy proposals set out in the government’s response to the LGPS Fit for the Future consultation”. A response to the consultation will be drafted and circulated to Committee members for review before the consultation is scheduled to close on 2 January 2026.

Following a government directive for LGPS funds to consolidate into fewer and stronger investment pools at its last meeting, 9 September 2025, the Committee resolved to join Local Pension Partnership Investments (LPPI).  Five of the other nine Brunel Pension Partnership (Brunel) funds are also joining LPPI.

To receive a verbal update from Cllr John Beesley in his capacity as a member of the Scheme Advisory Board (SAB) for the Local Government Pension Scheme (LGPS).

The Committee received a verbal update from Cllr John Beesley in his capacity as a member of the SAB. 

SAB recommended that all LGPS funds kept a close eye on the Pension Schemes Bill to see how the Bill evolves and how it will affect the LGPS. 

Committee members were reminded of the SAB’s website as a tool to stay up to date with the latest LGPS news and scheme developments.

To confirm the dates for the meetings of the Committee in 2024/25:

1.30 pm Tuesday 17 March 2026 - County Hall, Dorchester.

All meetings to be preceded by training for committee members 10am to 12.45pm.

1.30 pm Tuesday 17 March 2026 – County Hall, Dorchester.

All meetings to be preceded by training for committee members 10am to 12.30pm.

To move the exclusion of the press and the public for the following item(s) in view of the likely disclosure of exempt information within the meaning of paragraph 3 of schedule 12 A to the Local Government Act 1972 (as amended).  The public and the press will be asked to leave the meeting whilst the item of business is considered.

Decision

That the press and the public be excluded for the following item(s) in view of the likely disclosure of exempt information within the meaning of paragraph 3 of schedule 12 A to the Local Government Act 1972 (as amended).

To receive a verbal update from officers on progress made to implement the changes required in response to the government’s plans for the future of Local Government Pension Scheme (LGPS) investment pooling.

Officers provided an update on progress implementing the change of the pension fund’s investment pooling manager from Brunel to LPPI agreed by the Committee at its previous meeting, 9 September 2025.