Harrow Council is preparing to procure a new pensions administration system as the current contract nears its expiration date next year. The council will use the National LGPS Framework for the procurement process.

The decision was announced at the Pension Board meeting on 4 December 2025, where members were informed that cabinet approval had already been secured. The Agenda frontsheet for the meeting outlined key discussion points, including the Pensions Administration Update and compliance with The Pensions Regulator (TPR) Code of Practice.

During the meeting, the board also received updates on several other key areas related to the pension fund:

  • Pension Fund Committee Items: The board reviewed items considered by the Pension Fund Committee at its November 17, 2025, meeting. These included a draft funding strategy statement, an update on the London CIV (London Collective Investment Vehicle) and LGPS, the pension fund key risk register, monthly fund valuations to 30 September 2025, and the Harrow PF Draft Responsible Investment Policy.

    The draft funding strategy statement outlines the funding strategy objectives, which include:

    • taking a prudent long-term view to secure the regulatory requirement for long-term solvency, with sufficient funds to pay benefits to members and their dependants
    • using a balanced investment strategy to minimise long-term cash contributions from employers and meet the regulatory requirement for long-term cost efficiency
    • where appropriate, ensuring stable employer contribution rates
    • reflecting different employers' characteristics to set their contribution rates, using a transparent funding strategy
    • using reasonable measures to reduce the risk of an employer defaulting on its pension obligations
    • using reasonable measures to manage exposure to environmental, social and governance risks, and their impact on long term employer funding
    • the fund will engage with employers when developing funding strategy in a way which balances the risk appetite of stakeholders

    The Harrow PF Draft Responsible Investment Policy outlines the Fund's approach to Responsible Investment (RI ) including where responsibility lies; how environmental, social and governance (ESG ) considerations are embedded in the Fund's investment processes; and how the Fund stewards its investment assets in the interests of its beneficiaries.

    The Committee has sought advice on climate risk management and has committed to managing the Fund's assets in line with a net zero target by 2050 or sooner.

  • TPR Code of Practice: The board was asked to scrutinise reports on the fund's compliance with The Pensions Regulator's (TPR) General Code of Practice (GCOP). The Pension Fund Committee requested the board review the appendices to the TPR Code of Practise Compliance Update report and report back any concerns that arise. The Supplemental Agenda provided additional information on the Review of Pension Fund Committee Items and The Pensions Regulator (TPR) Code of Practice, noting that the reports were not available when the initial agenda was printed.

    The TPR Code of Practise Compliance Update report lists actions that officers and members may need to take to achieve full compliance, including:

    • Reviewing the terms of reference of the Pension Board and Pensions Committee
    • Performing regular gap analysis of Pension Fund Committee skills and knowledge
    • Updating the Pension Fund Training Policy
    • Creating an induction pack for the Pension Board
    • Specifying Pension Fund specific actions in the finance business continuity plan
    • Adding conflict of interest to key risk register
    • Considering adding administration risk to key risk register
    • Developing a programme to review internal controls
    • Developing a risk management policy to assist with the identification and classification of risks
    • Changing the terms of reference of the Pension Fund Committee to include oversight of administration
    • Ensuring compliance with the training policy
    • Considering a formal RACI matrix covering all decision making, to be included in the Investment Strategy
    • Updating existing procedure notes for administration processes, information handling and contribution collection
    • Reviewing the IDRP policy and communications policy
    • Creating procedures for completing scheme returns
    • Updating the breaches policy and carry out training for committee and board

  • Administration Performance: The Pensions Administration Update with Key Performances report noted that for the quarter ending 30 September 2025, the Administration Team completed a total of 2,566 tasks. An average of 71% of all tasks were completed within the KPI target over this period.