The Newham Council Staff Pension Committee met to discuss pension administration, the budget, employer admissions, and investment strategies. The committee approved the Pension Administration budget for 2025-26 and the updated Admission Policy, and also discussed freedom of information requests related to fund investments. They also agreed to attach a note about a previous adjourned meeting to the minutes of this meeting.

• Appointment of Vice Chair
• Minutes of the Last Meeting
• Pension Fund Investment Transparency
• Pension Administration Update
• Pension Administration Budget
• Admission Policy and Employer Update
• Pension Fund Business Plan
• Investment Strategy Update

Appointment of Vice Chair

Councillor John Gray, Chair of Pensions Committee, opened the meeting by asking for nominations for vice chair of the committee for the municipal year. Councillor Jane Barbara Lofthouse was nominated and seconded, and elected unopposed.

Minutes of the Last Meeting

The committee addressed an issue concerning the minutes of a previous meeting. Councillor Nate Higgins, Green Group Leader, raised concerns that the minutes provided were from the 13th of March, and did not include a more recent meeting where discussions had taken place and decisions were potentially altered. He noted that a proposal regarding pension board terms of reference had been withdrawn following discussions at that meeting, and felt this should be reflected in the minutes.

Councillor John Gray, Chair of Pensions Committee, clarified that the previous meeting had been adjourned due to Councillor Jennifer Bailey's ill health, and this meeting was convened to cover the same business.

Andrew Ward, Deputy Director of Finance for London Borough of Newham, suggested circulating any minutes that were made of the previous meeting for information, and amending the minutes of this meeting to reflect that a previous meeting and discussion had taken place. This was agreed by the committee.

Councillor Winston Vaughan noted that his attendance was not recorded at the meeting on 13 March. This was noted for correction.

Pension Fund Investment Transparency

Councillor Nate Higgins, Green Group Leader, raised a point about the council's handling of freedom of information requests regarding the pension fund's investments. He stated that Newham Council had rejected requests that most other councils were accepting, citing costs exceeding £450, which suggested the information was not readily available. He expressed concern that residents wanted to know where the funds were invested, particularly if they were complicit in genocide.

Councillor John Gray, Chair of Pensions Committee, asked for specific details of the requests to be shared with him and Andrew Ward, Deputy Director of Finance for London Borough of Newham. He stated that in principle, unless there was a confidentiality requirement, the council should be transparent about its investments.

Andrew Ward, Deputy Director of Finance for London Borough of Newham, explained that the council had used an exemption based on the cost of providing the information. He offered to investigate the specific requests and discuss the matter further.

Councillor Nate Higgins, Green Group Leader, raised concerns about the level of control the council would have over ethical investment decisions once funds were pooled into the London Collective Investment Vehicle (LCIV). He asked what remaining controls Newham would have to ensure investments aligned with its ethical expectations, particularly regarding investments in Israel.

Councillor John Gray, Chair of Pensions Committee, acknowledged the concerns and explained that the responsibility for setting the responsible investment (ESG) policy would remain with the committee, but the implementation and strategic asset allocation would move to the LCIV. He noted that the LCIV was developing ways to reflect responsible investment aims, but there was no guarantee that these would directly map to Newham's RI policy.

Councillor John Gray, Chair of Pensions Committee, also noted that there would be a meeting to look at the principle as important as Newham's ESG fund is to him to get things done in the world it would be better if there was a single ESG policy covering all the funds which would be agreed collectively because the world will pay more attention to 25 billion pounds of assets rather than one and a half billion pounds of assets.

Andrew Ward, Deputy Director of Finance for London Borough of Newham, added that the LCIV was developing policies collaboratively with the councils, and there would be avenues for engagement.

Councillor Dr Rohit Kumar Dasgupta, Chair of Council, raised the point of balancing ethical responsibilities with fiduciary duties¹, as poorly performing funds could require the council to make additional contributions, potentially impacting other services.

Pension Administration Update

Jacqueline Andress, Pensions Project and Contracts Manager, provided an update on pension administration, covering regulatory changes, performance, and the pension regulator's code of practice.

• McCloud Judgement: The government issued final regulations on the McCloud solution², effective from 1 October 2023. LPPA has run the underpin calculation against 35 eligible Newham records and awarded one underpin addition of £356 per annum. Due to delays in updating the pension administration system, Newham Pension Fund exercised its discretion to extend the deadline for processing recalculations to 31 August 2026.

• Pensions Dashboard: There is a final deadline of 31 October 2026 for all public sector pension schemes to be connected to the pensions dashboard³. However, an issue with the connection process means the deadline is unlikely to be met. LPPA confirmed that Newham does not need to report itself to the Pensions Regulator for a breach, but should notify the regulator of the delay. The public is expected to be able to access the data in the first half of 2027.

Councillor Nate Higgins, Green Group Leader, expressed concern about the missed deadline, the lack of clear reasons for the delay, and the absence of accountability. He requested more detailed information about the technical difficulties and the steps being taken to address them. Jacqueline Andress, Pensions Project and Contracts Manager, offered to forward the technical information she had received.

• LGPS Amendment Regulations: A consultation on amendment regulations for the LGPS closed on 7 August 2025. The proposed changes aim to improve fairness and access, including equalising survivor benefits, removing the age 75 limit on death grant entitlement, and making authorised absences of less than 31 days automatically pensionable.

• Performance Update: LPPA's reported performance remained above its 95% SLA, with an average of 98.9% for the quarter. The number of registered Newham pension fund members for the online portal was 6,888, an increase of 534 new members.

• Code of Practice: The actuary has carried out a full review of Newham's compliance against the Pensions Regulator's (TPR) General Code of Practice, and officers are preparing a plan to ensure full compliance. This plan will be presented to the Local Pension Board before going to the committee.

• Pension Board Terms of Reference: Following resignations from the Local Pension Board, a letter was circulated to the three main unions outlining the importance of participation to the board, both Unison and Unite have since each put forward a nomination.

• Pensions Administration Strategy and Charging Policy: The committee was asked to approve the updated Pensions Administration Strategy and Charging Policy.

The committee approved the administration updates and the Pensions Administration Strategy and Charging Policy.

Pension Administration Budget

Jacqueline Andress, Pensions Project and Contracts Manager, presented the Pension Administration Service 2025-26 Budget, seeking approval for a budget of £1.090m, an increase of 11.98% on 2024-25. The increase was attributed to rising membership numbers and an increase in price per member.

The increase in price per member was due to:

• Inflationary pressures and increased employer national insurance contributions
• Service development
• Data quality
• Legislative and compliance requirements

Councillor Nate Higgins, Green Group Leader, raised concerns about the lack of control over costs, as the council would be charged whatever the service cost. He asked how the council could challenge the 9% per member increase.

Jacqueline Andress, Pensions Project and Contracts Manager, explained that the council had limited levers due to the shared service arrangement with LCC. The options were to review the market and consider an organic provision, although there were limited alternatives. She added that service delivery was a key driver, and the council would monitor performance and challenge costs.

The committee approved the Pension Administration budget of £1.090m for the 2025-26 financial year, subject to a variance report being brought back to the committee in the future.

Admission Policy and Employer Update

Jacqueline Andress, Pensions Project and Contracts Manager, presented a report on the Admission Policy and Employer Update. The report outlined proposed changes to the admission policy and provided an update on the latest position regarding admissions into the fund.

The key proposed change to the admission policy was that any Transferee Admission Body (TAB) under contract to a school or academy within Newham would be admitted on the basis of a default pass-through arrangement⁴. This means that the contribution rate will be set equal to the rate payable by the letting authority when the admission commences, and there will be no separate tracking of liabilities or notional assets for the admission body.

The report noted that in November 2024, there were 12 employers with outstanding admissions for over 6 months, and following a review, the total number of outstanding admissions was 29. One of the main issues was employers reporting difficulty in obtaining the required security in the form of a bond or guarantor.

The proposed changes to the admission policy aim to address this issue by making the pass-through arrangement the default option for schools and academies. This will give employers more certainty when pricing a contract and reduce the administrative burden.

Councillor Winston Vaughan raised concerns about employers wanting to join the scheme and the risk to the council. Jacqueline Andress, Pensions Project and Contracts Manager, explained that staff working at an academy or school are already in the LGPS, and when the school outsources a cleaning or catering contract, the new employer takes on the staff via TUPE, and the staff retain the right to be part of the LGPS.

Councillor Dr Rohit Kumar Dasgupta, Chair of Council, suggested that action should be taken against schools for not getting this sorted, as they have a responsibility.

The committee approved the updated Admission Policy and noted the latest position of employers seeking admission to the fund.

Pension Fund Business Plan

Rakesh Rajan, Pensions Fund Manager, presented the Pension Fund Business Plan Update. The report provided an update on the Newham Pension Fund's 2024/25 business plan and developments since the last meeting.

Key points included:

• London Collective Investment Vehicle (LCIV) Update: The LCIV submitted its strategic plan to the government, which was supported. The LCIV has launched LGPS PASS, a selection of Pension Advisory and Support Services.
• LGPS General Updates: The government has given the green light to six pools, including the LCIV, to proceed with their plans. The government will require all Administering Authorities (AAs) to delegate the implementation of their investment strategy to their pool and transfer all assets to the management of their pool.
• The Pensions Schemes Bill: The government introduced the Pensions Bill on 5 June 2025, aiming to help savers achieve better outcomes and support economic growth.
• Pension Fund Monitor: The Fund's revenue forecast and cash flow show no concerns regarding liquidity or funding.
• Draft Pension Fund Budget 2025-26: The draft Pension Fund budget is set out in appendix 3. The Fund is maturing and expects to be cash flow negative for net dealings with members but cash flow positive when investment income and management expenses are considered.
• Draft Pension Fund Business Plan 2025-26: The Draft Business Plan builds on the previous year's plan and identifies the key tasks for the PC in respect of Fund issues for 2025-26.

The committee noted the Fund's Budget Monitor and Cash Flow update and agreed to the Draft Pension Fund Budget 2025-26 and the Draft Pension Fund Business Plan 2025-26.

Investment Strategy Update

Rakesh Rajan, Pensions Fund Manager, presented the Investment Strategy Update. The report provided an update on the Fund's investment strategy and its implementation.

Key points included:

• As of 30 June 2025, the Fund's asset valuation stood at £1.934bn, an increase of £38m from the previous quarter.
• The Fund had an estimated funding deficit of £9m, representing a funding level of 99%.
• The report included an analysis of fund performance and key influences on the funding level.

Councillor Nate Higgins, Green Group Leader, asked about the significance of the £9m deficit and how it would impact the council. Pete Smith, from Barnard Warton, explained that the deficit would impact contribution rates, but the effect would be relatively small. He added that the funding level was the primary driver, and the committee would be informed if it started to fall.

The committee noted the Investment Strategy Update.

Following this item, the committee moved into a closed session, excluding the press and public, to discuss exempt appendices related to the Investment Strategy Update.