The Pension Board of Waltham Forest Council met on Wednesday 12 June 2024 to discuss a range of pension fund matters. Key topics included the fund's investment strategy and performance, updates on pension administration services, and ongoing training for board members.

Investment Issues: Occupied Palestinian Territories and LGPS Sharia Law Compliance

A significant item on the agenda was the concern regarding the pension fund's exposure to companies with interests in the Occupied Palestinian Territories (OPT) and Israel. The report indicated that the Pension Committee had expressed concerns about potential human rights violations by companies in which the fund is invested. Officers were engaging with fund managers and investment advisors to explore options within the regulatory framework of the Local Government Pension Scheme (LGPS). The report also addressed the question of whether the LGPS is Sharia compliant, noting that a report commissioned by the Scheme Advisory Board concluded that Muslim employees can continue to contribute to and benefit from the LGPS as part of their contractual arrangements.

Investment Strategy and Performance Update

The board was scheduled to receive an update on the performance of the fund's investments as of 31 March 2024. The total value of the pension fund investments was reported to be £1,072.1 million, an increase of £88.5 million from the previous quarter. The report detailed the performance of various fund managers against their benchmarks, noting that the overall fund performance was not currently on target to meet its strategic objective of recovering its deficit, as set out in the 2022 triennial valuation. The report also provided an update on the investment strategy, including recent decisions to disinvest from equity protection strategies and invest in diversified growth funds, as well as commitments to renewable infrastructure funds.

Training Report

A report was presented on the developments in training for pension board members. The board was asked to complete their Training Needs Assessments to inform the development of a formal training plan for 2024/25. The report highlighted that four new members had joined the board and one had recently joined, and outlined the existing training modules available through Hymans Robertson, which cover various aspects of the LGPS. The report also detailed planned training sessions for the current meeting, including an overview of the LGPS, the Waltham Forest Pension Fund, governance roles, and the importance of training for committee and board members.

Pension Administration Service Report

This report provided an update on the pension administration partnership with the Pension Shared Service (PSS). Performance statistics for the fourth quarter of 2023/24 and the full year were presented, indicating that overall performance was maintaining a high level, though slightly behind recent quarters and the previous year's performance. The report detailed performance against targets for various work items, customer satisfaction levels, and the number of complaints received. It also highlighted achievements during the period, such as the completion of end-of-year reconciliations, the application of the yearly Pensions Increase, and the implementation of the McCloud remedy.

LGPS Update

An update on the Local Government Pension Scheme (LGPS) was scheduled, which would likely cover current pension issues and upcoming projects.

Risk Strategy

The board was to consider the risk strategy, following a suggestion from the board that the Pension Fund Committee review risk management. This included proposals to incorporate the CIPFA risk management guidance and the development of a training plan on risk management.

Other Scheduled Discussions

The meeting also included discussions on the completion of training needs assessments, the LGPS update, and the action tracker. The agenda also noted the potential exclusion of the press and public for certain items if exempt information was to be discussed.