Brent Council's pension fund has seen a significant improvement in its financial health, allowing for a substantial cut in employer contribution rates from April 2026. The latest triennial actuarial valuation, as of March 31, 2025, reveals the fund is now 113% funded, a marked increase from 87% in 2022.

This surplus means that employer contribution rates for most employers will be reduced from 30.5% to 23% of pay. This positive development is attributed primarily to higher assumed future investment returns. According to the 2025 Triennial Valuation Results and Funding Strategy Statement report, these higher returns are a key factor, supported by the Investment Strategy Review report which notes a significant improvement in past service funding position and higher expectation for future investment returns. The Investment Monitoring Report - Q4 2025 further elaborates that Global equities performed strongly, driven by UK and emerging markets equities. The Fund's passive global equity mandates were the main contributors to positive returns over the half-year .

Bar chart showing the performance of the Brent Pension Fund against its benchmark over the last 6 months, last 12 months, and last 3 years.
Fund Performance

John Smith, Pensions Manager for Brent Council, presented the valuation results, highlighting the improved funding position. While the 113% funding level is a positive sign, the report 2025 Triennial Valuation Results and Funding Strategy Statement indicates that the 23% contribution rate will still remain on the high side compared to most other funds in the sector. It is noted that the council is one of the poorer funded funds, and that means that we are paying a higher contribution rate compared to the sector average, which was around 21% in the last cycle and is expected to fall into the mid-teens.

The reduction in employer contributions is intended to pass on the benefits of the improved funding position to the employers in the fund, because we know that budgets are stretched all across the council and through our schools. However, the specific projected impact of this reduction on the council's budget and service delivery is not detailed in the available information.

Looking ahead, the 2025 Triennial Valuation Results and Funding Strategy Statement report suggests a strategic shift to protect the fund's surplus and ensure long-term sustainability. The fund aims to reduce its risk exposure and move more towards your income assets, increasing allocations to infrastructure, property, and fixed interest gilts, as well as introducing private equity to support local investment and climate objectives. The current strategy aims to maintain a funded status above 100% over the long term, with the 23% contribution rate providing at least an 80% likelihood of being 100% funded at the end of the 20-year funding time horizon.

A donut chart illustrating the asset allocation of the Brent Pension Fund, with
Asset Allocation

While the fund has improved its financial health, the report 2025 Triennial Valuation Results and Funding Strategy Statement also emphasizes a commitment to maintaining the surplus and avoiding a deficit, as employers may not be able to afford increased contributions in the future. Specific long-term implications beyond the next triennial valuation are not explicitly detailed.

Further details on the fund's performance and strategy can be found in the following reports:

A stacked bar chart showing the number of
Member Demographics