The Pensions Committee noted updates on the Newham Pension Fund's administration, business plan and investment strategy. They also agreed to consult on a draft revised Investment Strategy Statement, which includes details on how the fund will meet its six investment and governance objectives.

Pension Administration Update

The Committee received an update on the administration of the Newham Pension Fund (“the Fund”), including the latest on upcoming legislative changes impacting the Local Government Pension Scheme (LGPS).

The report explained that the Government has introduced new regulations requiring pension schemes to upload member details to a central dashboard by 31 October 2026. This pensions dashboard will allow people to search for lost pension benefits.

The Committee also received an update on the performance of Local Pensions Partnership Administration (LPPA), which administers the Newham Pension Fund. LPPA's performance was reported above its 95% target for the third successive quarter.

Business Plan Update

The Pensions Committee received an update on the Newham Pension Fund's business plan. The Committee heard that the London Collective Investment Vehicle (LCIV) had saved investors £2.4m in 2023. The LCIV is a pooled investment vehicle for London's local government pension schemes.

The Committee discussed the Economic Activities of Public Bodies (Overseas Matters) Bill. The Bill, which is approaching its final stages of approval in Parliament, will restrict the ability of public sector pension funds to make investment decisions based on ethical or foreign policy considerations.

There was a difference in belief (moral) and financial reasons and the bill related to this in parliament.

Following the discussion, the Committee requested more information on the legislation.

The meeting also received an update on the implementation of the Pension Regulator's (TPR) new General Code of Practice. The new code will replace the existing Code of Practice 14 (CoP14), which covers the governance and administration of public service pension schemes. The Committee was informed that the content of the new code is largely the same as CoP14 but will require funds to update their processes, policies and procedures.

The Committee noted that the Draft Governance Compliance Statement 2023-24 was agreed at the full Council meeting on 11 December 2023. The statement was amended to reflect the increase in the Pensions Committee membership from eight to nine members and sub-membership from two to three. The amended statement was circulated to employers of the Fund on 5 March 2024.

The Committee also noted the update on the Macro-economic adviser (MEA) contract, which is currently with Fathom until 31 May 2024. An opportunity to procure the remaining period of the SIA contract will be carried out through the Council’s Request For Quote (FRQ) process.

Lastly, the Committee was reminded that Members were offered training on an online training platform called Enlighten, presented by Barnett Waddingham. This online platform was a training tool designed to support the training needs of the Pensions Committee, Local Pension Boards and Officers.

Investment Strategy Update

The Committee received an update on the Newham Pension Fund’s investment strategy and performance. The fund had a funding deficit of £56m at 31 December 2023, down from a surplus of £4m at 31 March 2022. The funding deficit was attributed to changes in inflation.

The Committee also received an update on the London CIV's performance. The report noted that the LCIV Global Equity Focus Fund, in which the Newham Pension Fund is invested, was on “enhanced monitoring.” The next review of the fund will take place in June 2025.

The Committee noted the content of the Draft Revised Investment Strategy Statement (ISS). The new ISS outlines how the fund will meet its six investment and governance objectives and includes further information on the fund’s pooling partner. The Committee agreed to consult with stakeholders on the draft ISS.