Harrow Council is set to consult with employers and stakeholders on its draft Funding Strategy Statement (FSS) following the 2025 triennial valuation of the council's pension fund. The consultation aims to meet the Local Government Pension Scheme (LGPS) Regulations requirement for consultation.
The decision was made at the Pension Fund Committee meeting on Monday, 17 November 2025, where members reviewed the Triennial Valuation - Draft Funding Strategy Statement and endorsed proposals for consultation.
The FSS outlines how the Fund aims to ensure it can meet its present and future liabilities in full over its lifespan. According to the meeting agenda, the Appendix 1 - Draft Harrow Funding Strategy Statement includes key policies regarding cessations, contribution reviews and pass-through arrangements, clarifying arrangements with admitted bodies. Details of these arrangements are available in the appendices of the draft FSS.
Steven Law of Hymans Robertson LLP, the fund's actuary, told the committee that the changes suggested in the new statutory guidance weren't substantial compared to the fund's previous funding strategy statement. He noted that page 15 of the supplementary pack sets out the blueprints of how he will calculate contribution rates for all the employers and the pension fund.
Key risks identified in the Pension Fund Risk Register include a significant fall in asset values, underperforming investments, liabilities moving more than fund assets, fund managers failing to achieve benchmark returns, and major cybersecurity incidents.
One substantive change is that academies and colleges will be treated similarly to the council. Law explained that the Department for Education will provide a guarantee to cover any deficit in the pension fund should a multi-academy trust or college fail. In return, the department wants the council to treat local authority schools and academies the same when setting contribution rates. This involves consulting with the Department for Education on all education bodies within the fund, with a focus on fairness.
To gather feedback, an employers' forum is scheduled for January 2026, where Steven Law will present the Valuation results and FSS. The document will also be published on the Harrow Pension Scheme website, and will be referred to the Pension Board's next meeting on 4 December 2025.
As outlined in the officer's report, the next steps include the employer forum in January 2026 and final approval of the funding strategy statement at the Pension Fund Committee meeting on 16 March 2026.
