The Pensions Committee of Newham Council met on Thursday 16 July 2026, approving the 2026/27 Pension Administration budget and the Pension Fund Business Plan, and agreeing to the London Collective Investment Vehicle (London CIV) Investment Management Agreement. The committee also agreed to note the Barnett Waddingham report on the Fund's investment performance and funding update as at 31 March 2026.

Election of Vice Chair

Councillor John Gray was elected unopposed as Vice-Chair of the Pensions Committee for the 2026/27 municipal year. Councillor Gray declared a deferred membership of the Local Government Pension Scheme (LGPS).

Minutes of the Last Meeting

The minutes of the previous meeting held on 5 February 2026 were approved as a correct record.

Pensions Administration Update

The committee received an update on pension administration services, which are delivered by Local Pensions Partnership Administration (LPPA) through a shared arrangement with Lancashire County Council. The proposed administration budget for 2026/27 is £1.1 million, representing a 1.5% increase on the previous year.

Significant legislative changes arising from the Fit for the Future reforms and the Pension Scheme Act 2026 were discussed. These include new governance requirements such as the appointment of a Senior LGPS Officer and an Independent Person, and the introduction of independent governance reviews. A training strategy will be developed to address enhanced expectations for knowledge and understanding among officers, committee members, and Local Pension Board members.

Further legislative developments noted include reforms to fairness and accessibility in pension schemes, changes to death grant age restrictions, measures to reduce pension inequalities, adjustments to survivor benefits, the reinstatement of councillor eligibility for LGPS membership, future Fair Deal reforms for outsourced staff, and the increase in the minimum pension age to 57 from April 2028.

Progress on employer admissions was reported, with 15 out of 29 outstanding admission agreements progressed, reducing the backlog to 14. The committee also received a summary of the Local Pension Board meeting held on 24 March 2026, which covered LPPA performance, regulatory developments, and communication improvements.

The committee resolved to approve the 2026/27 Pension Administration budget of £1.107m and to note the administration updates.

Business Plan Update

Representatives from London CIV provided an overview of pension pooling arrangements and the impact of recent LGPS investment reforms. London CIV, owned by the London boroughs' pension funds and Buckinghamshire Pension Fund, aims to improve governance, investment opportunities, economies of scale, and reduce costs.

The committee was informed about the implications of the Fit for the Future reforms and the Pension Scheme Act 2026, which require LGPS funds to increase their reliance on authorised pool companies for investment implementation. While Newham already has significant assets managed through pooling, further work is needed to ensure full compliance.

Key points from the update included:

• London CIV directly manages approximately 18% of Newham's assets.
• Additional passive and private market assets will be brought under the required governance framework.
• An Investment Management Agreement (IMA) is necessary to formalise London CIV's responsibility for the implementation and oversight of all assets.
• Existing private market investments will not be sold or altered unnecessarily but will be subject to enhanced monitoring.
• Future requirements for responsible investment, stewardship, and climate action were outlined, with administering authorities retaining responsibility for setting investment objectives and strategies, while London CIV implements these decisions.

The committee requested that the presentation slides be circulated for further understanding.

The committee then considered the Investment Management Agreement (IMA) with London CIV, which aims to finalise the onboarding of the Fund's remaining assets and ensure compliance with new pooling regulations. Approval of the IMA was seen as providing the authority to proceed with implementation arrangements.

The committee resolved to approve the London CIV Investment Management Agreement.

The draft Pension Fund Budget for 2026/27 was presented, with officers explaining the underlying assumptions and medium-term planning forecasts. The committee resolved to approve the draft budget.

The Pension Fund Business Plan for 2026/27 was also considered. This plan outlines the principal activities, compliance requirements, governance actions, and project milestones for the year, with progress to be monitored and reported regularly. The committee resolved to approve the draft Pension Fund Business Plan.

Investment Strategy Update

The committee received an update on the Fund's investment performance, funding levels, and investment market developments, presented by officers and the Fund's investment adviser.

Key points from the update included:

• The Fund's value at March 2026 was just over £2 billion.
• Asset values had experienced a slight decrease during the quarter due to market volatility.
• The Fund's financial position remained strong, with a funding level of approximately 103% and assets exceeding liabilities by around £60 million.
• The report complemented detailed performance reports from Northern Trust and aimed to provide a broader understanding of market developments and strategic investment issues.

Market volatility during the quarter was attributed to geopolitical tensions in the Middle East, concerns over oil supply and the Strait of Hormuz, uncertainty in global economic growth, and investor concerns about the impact of artificial intelligence on company valuations, particularly in technology sectors.

The potential implications of oil supply disruptions on inflation and global investment markets were discussed, with advisers explaining the Fund's long-term investment horizon, the absence of assumptions for a market crash, the potential for rising energy prices to contribute to inflation, and the diversification benefits from existing energy and renewable investments. Ongoing risk monitoring and regular reporting were highlighted.

The committee was informed that the recent actuarial valuation had led to a reduction in the employer contribution rate from 18.2% to 15.9%, reflecting the improved funding position and reducing costs to the Council's General Fund. Conversely, weaker fund performance could lead to increased contributions in the future.

The committee welcomed the positive funding position and requested further training on actuarial valuations, funding assumptions, and investment strategy for newer members.

The committee resolved to agree to note the Barnett Waddingham report on the Fund's investment performance, including the funding update as at 31 March 2026.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the remainder of the meeting to discuss exempt information.

Investment Strategy Update Exempt Appendices

This minute is exempt.

Exempt Minutes of the Last Meeting

The exempt minutes of the meeting held on 5 February 2026 were approved as a correct record.

Date of Next Meeting

The next Pensions Committee meeting was scheduled for 7 October 2026.