This week, the Havering Council held a Pensions Committee meeting on Tuesday, 25 June 2024. The committee discussed several important matters related to the London Borough of Havering Pension Fund. Here are the key decisions and discussions from the meeting:

Pension Fund Accounts 2023-24

The committee reviewed the audited accounts for the Pension Fund for the fiscal year 2023-24. The accounts revealed that the fund had a market value of £1.84 billion at the end of March 2024. Unfortunately, the fund returned -1.2% during the year, underperforming its custom benchmark return of -0.5%. Despite this underperformance, the accounts were noted by the committee.

Pension Administration Budget 2024-25

The committee approved the Pension Administration Budget for the upcoming fiscal year 2024-25. This budget, which covers costs such as staff, office, and IT expenses, totals £1.904 million. This represents a 7.3% increase (£129,000) from the previous year.

Administration of the Cleantech Fund

A significant decision was made to transfer the administration of the Cleantech Fund to the Pension Fund team. This move aims to provide members of the Cleantech Fund with the same high level of administrative support currently enjoyed by Pension Fund members. The committee approved this transfer.

This will provide a number of advantages. Primarily it will give members of the Cleantech fund access to the same high level of administrative support that is currently enjoyed by members of the Pension Fund.

Pension Fund Monitoring Report

The committee received a performance report for the first quarter of 2024-25. The report indicated that the Pension Fund had outperformed its benchmark during this period, a positive sign amidst the previous year's underperformance.

Pension Fund Business Plan

The committee reviewed the Pension Fund's Business Plan for 2023-24. This plan outlines the fund's objectives, investment strategy, and risk management framework, providing a roadmap for future operations.

Review of Pension Fund Administration Policy

Lastly, the committee considered a report recommending changes to the Pension Fund's Administration Policy. These changes were mainly administrative and did not affect the overall policy. For example, one change updated the notification timeline for applicants:

To change the wording 'The Pensions Manager will notify the applicant in writing of the decision within 10 working days' to 'The Pensions Manager will notify the applicant in writing of the decision as soon as possible.'

Understanding the workings of the Pensions Committee is crucial as it impacts many residents relying on the Pension Fund for their future financial security. The decisions made in these meetings shape the administration and performance of the fund, affecting its sustainability and reliability.