The Pensions Committee of Newham Council met on Wednesday 10 December 2025 to discuss updates on pension administration, the fund's business plan, and investment strategy. Key decisions included noting administration updates, approving the Pension Administration Strategy and Charging Policy, and approving the Pension Administration budget for 2025-26.

Pensions Administration Update

The committee received an update on the administration of the Newham Pension Fund. This included information on legislative changes impacting the Local Government Pension Scheme (LGPS), such as the McCloud judgement, which addresses age discrimination in pension schemes. LPPA (Local Pension Partnership Administration) is working on recalculating benefits for affected members, with a deadline of August 2026 for completion.

The Pensions Dashboard, a government initiative to allow individuals to view all their pension information online, is facing delays. While LPPA is on track to connect in December 2025, public access is not expected until early 2027. Consultations are ongoing regarding proposed amendments to the LGPS, including raising the minimum pension age to 57 and allowing elected mayors and councillors to join the scheme.

LPPA's reported casework performance remained above its 95% Service Level Agreement (SLA), with an average of 98.6% for the quarter. The number of registered members for the online portal, PensionPoint, increased by 414.

A plan to ensure full compliance with The Pensions Regulator's (TPR) General Code of Practice is being developed, with a draft presented to the Local Pension Board. The Board's latest meeting on 25 November 2025 discussed administration reports, legislative updates, and the draft Code of Practice compliance plan. Membership numbers across the fund continue to increase overall, although active membership has seen a slight decrease due to data cleansing efforts for the triennial valuation. Four further employer admissions have been concluded since the last committee meeting, reducing the number of outstanding historic admission cases to 21.

The committee noted the administration updates and approved the Pension Administration Strategy and Charging Policy. They also approved the Pension Administration budget of £1.090m for the 2025-26 financial year.

Business Plan Update

The committee received an update on the Newham Pension Fund's Business Plan for 2025/26. The London Collective Investment Vehicle (LCIV) is progressing with its strategic plan, with key deliverables for the March 2026 deadline including providing primary investment strategy advice, transitioning all assets under LCIV management, and implementing the investment strategy. Three key documents – the Investment Management Agreement, Letter of Engagement, and Service Level Description – are being developed to define the LCIV's roles and responsibilities.

Updates on LGPS general matters included progress on a new governance framework requiring the appointment of a senior LGPS officer and a consultation on scheme improvements, such as raising the minimum pension age and allowing mayors and councillors to join the LGPS. A technical consultation on pooling and investment regulations is also underway. The total value of LGPS funds in England and Wales was reported as £402.3 billion.

The Pension Schemes Bill 2025 is progressing through Parliament, with Royal Assent anticipated in mid-2026. The Autumn Budget 2025 announced reforms affecting the LGPS, including a 3.8% pension increase from April 2026 based on the September CPI, and planned reforms to LGPS asset pooling.

The Fund's budget monitor and cash flow updates showed no concerns regarding liquidity or funding. The committee noted these updates and the ongoing exploration of voting and engagement services. They also agreed to the content of the report, specifically the Draft Funding Strategy Statement (FSS) for 2025, which will be circulated for stakeholder consultation. The Draft Pension Fund Annual Report 2024-25 was also presented.

Regarding procurement, actuarial services will not be available through the LCIV offering, and a new framework is being renewed. Officers will seek a three-year contract for these services, with a tender value of approximately £0.4m. The LCIV is also finalising a procurement exercise for custodian services to create an end-to-end operating model. Officers and the Fund's Investment Adviser are reviewing pension governance advisory services, exploring whether economies of scale can be achieved by using Federated Hermes or a comparable provider.

The committee noted the Fund's Budget Monitor and Cash Flow update, and that officers and the Fund's Investment Adviser are exploring voting and engagement services. They agreed to the content of the report, including the Draft Funding Strategy Statement for consultation and the Draft Pension Fund Annual Report.

Investment Strategy Update

The committee received an update on the Fund's investment strategy and its implementation. As of 30 September 2025, the Fund's asset valuation reached £2.047 billion, an increase of £112 million from the previous quarter, despite market volatility. The Fund's funding level is estimated at 99%, with a deficit of £9 million. The triennial valuation is nearing completion, which will provide updated figures.

The Barnett Waddingham report on the Fund's investment performance for the quarter ending 30 September 2025 was presented. The Fund's total invested assets returned 5.3% over the quarter, slightly behind the composite benchmark. Equity markets performed strongly, driven by technology stocks and positive returns in emerging markets. The Schroders currency protection portfolio was a notable detractor from performance due to a strengthening dollar.

The income portfolio returned 1.4% over the quarter, with positive performance from private debt funds offset by a negative performance from the Permira credit fund. The Fund's commitment to pooling is ongoing, with a £32m commitment to the LCIV Private Debt Fund II. The Fund's property holdings with CBRE are being transitioned to the LCIV platform.

The committee noted the report and the Barnett Waddingham report on investment performance and funding update.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the meeting for specific items of business due to the potential disclosure of exempt information. This related to exempt appendices for the Investment Strategy Update and exempt minutes from the last meeting.

Date of Next Meeting

The next meeting of the Pensions Committee is scheduled for 5 February 2026 at 18:30.