The Pensions Committee of Tower Hamlets Council met on Monday 09 March 2026 to discuss a range of important matters concerning the pension fund. Key decisions included the approval of the Pension Fund Business Plan and Budget for 2026/27, the adjusted contribution rate strategy for Tower Hamlets Council, and the final Funding Strategy Statement. The committee also noted the impact of upcoming LGPS regulatory reforms on the fund's risk profile and agreed to a redesign of the Pension Fund Risk Register.

Divestment and Ethical Investment

The committee received a petition from Kerri-Ann from UNISON and Sybil Cock from the Tower Hamlets Palestine Solidarity Campaign, calling for the divestment of pension funds from companies linked to the occupation of Palestine and the arms trade. They urged the committee to ensure that investment options offered by the London CIV (LCIV) were ethical and excluded companies involved in human rights abuses. The petitioners also requested the publication of the pension fund audit outcomes and a public statement confirming the council's commitment to divest from complicit companies. Mr Paul Audu, Interim Head of Pensions and Treasury, and Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living, responded to the concerns raised.

Pension Board Update

Mr John Jones, Independent Chair of the Tower Hamlets Pension Board, presented an update on the board's meeting held on 02 March 2026. He highlighted the continued improvement in the Pensions Administration team's performance and noted the progress on the Fit for the Future proposals and LGPS pooling. The board expressed support for the upcoming Pension Fund Information Forum for employees and emphasised the importance of wide circulation of details to encourage attendance. Mr Jones also discussed the ongoing work on the Risk Register, stressing its importance for overall fund governance and the need for mitigations and responsible officers to be assigned to each risk. The board was updated on the Fit for the Future proposals, the transfer of assets to the LCIV, and the development of new performance indicators. The importance of centralising training arrangements for board and committee members was also discussed. The board reviewed the 2026/27 Business Plan and budget, supporting the proposed new posts. An update on the 2025 actuarial valuation and its impact on future contributions was provided, with concerns raised about potential reductions in funding levels. The board also discussed the Governance Report, expressing concern over actions being taken to recover sums due to the fund and the steps being taken to protect the fund's financial position.

Pension Administration Report

Mr Paul Audu presented the Pensions Administration Report, providing an update on the administration and performance of the Scheme for the quarter ending 30 December 2025. The committee noted the report's content, including employer admissions and cessations in the pipeline, the scheme and legislative update, and progress on the data cleanse project to improve pension data quality. The update on Pensions Dashboards was also noted.

Scheme Engagement and Communications Report

Mr Paul Audu reported on employer and member engagement and communications, including feedback from the Pension Fund Employer Forum held on 22 January 2026 and an update on the proposed Pension Fund Annual Information Forum for employees. The committee noted the report, the engagement activities related to the 2025 actuarial valuation and government reform consultations, and the outcomes of the Pension Fund Employer Forum. They agreed to the draft agenda for the upcoming Pension Fund Information Forum and that an annual engagement performance report be presented to the committee going forward.

Pension Fund Risk Register

Mr Paul Audu presented a report proposing the redesign of the Pension Fund Risk Register in light of significant structural and legislative reforms to the Local Government Pension Scheme (LGPS) effective from 1 April 2026. The committee noted the impact of these reforms on the fund's risk profile. Amendments to the Risk Register were agreed to commence from the existing register, incorporating comments from the Pension Board and Committee. The report was to be read in conjunction with separate reports on LGPS Pooling and the Pension Fund Business Plan and Budget for 2026/27.

LGPS Pooling - Update

Mr Paul Audu provided an update on LGPS Pooling reforms, stemming from the Government's May 2025 response to the 'Fit for the Future' consultation and the subsequent publication of draft 2026 Regulations. The committee noted the report, particularly the structural separation of pension governance from wider Council finance governance, the ambitious timeline for mandatory asset transfers to pools, and the structural changes including governance mandates, training, and statutory appointments. They also noted the local investment reconfiguration requiring robust mechanisms for monitoring and reporting local investments via pools. The government's response to the 'Fit for the Future' consultation, the Pension Schemes Bill, and draft statutory guidance on Fund Governance, Investment Strategy Statement (ISS), and Pooling were also noted.

Training Events

This standing item allowed members to report on any training undertaken. No specific questions were raised by committee members.

Pensions Committee Work Plan

Mr Paul Audu presented the work plan, outlining standing items and specific reports for future meetings. A revised work plan for 2026/27 will be presented at the inaugural meeting of the new municipal year. No questions were raised by committee members regarding the 2025/26 work programme.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the remainder of the meeting for the consideration of restricted (Part 2) agenda items, as these contained exempt information.

Quarterly Investment Review

Mr Paul Audu introduced the report providing information on the activity and performance of the Pension Fund for the quarter ending 31 December 2025. The minutes for this item are restricted.

Business Plan and Budget 2026/27

Mr Paul Audu presented the Pension Fund Business Plan and Budget for 2026/27 for approval. The committee approved the proposed Business Plan and Budget, the establishment of an LGPS reform implementation programme with associated contingency provision, and noted the statutory timetable for compliance.

Pension Fund Quarterly Liquidity and Cashflow Monitoring

Mr Paul Audu updated members on the Pension Fund liquidity and cashflow forecast for 2025/26 to 2026/27. The committee noted the forecast.

Triennial Actuarial Valuation 2025 - Update

Mr Paul Audu provided an update on the ongoing 2025 triennial actuarial valuation and the remaining steps in the valuation year. The committee noted the content of the report and the update on the valuation. They approved the adjusted TH Council's contribution rate strategy and the final Funding Strategy Statement (FSS), and noted the cessation policy for exiting employers.

Governance Report

Mr Paul Audu presented a report updating the committee on instances where a statutory duty may have been breached under the LGPS or Pensions Act 2004 and reported to the Pensions Regulator. The committee noted the report and the reports on Breaches of Law to the Pensions Regulator. Officers were tasked with updating The Pensions Regulator on these breaches in February 2026.