The Pension Board of Tower Hamlets Council met on Monday 20 July 2026 to discuss the annual report, pensions administration, scheme engagement, and the pension fund risk register. Key decisions included the appointment of David Stephen Thompson as Vice-Chair and the agreement of the Pension Board's terms of reference, membership, and meeting dates for the 2026-27 municipal year.

Appointment of Vice-Chair

David Stephen Thompson was appointed as the Vice-Chair of the Pension Board for the municipal year 2026-27.

Terms of Reference and Meeting Dates

The Pension Board noted its Terms of Reference, quorum, and membership for the 2026-27 municipal year. The Board confirmed that its meetings would continue to start at 10 a.m. The scheduled meeting dates for the year were also agreed: 20 July, 21 September, 14 December 2026, and 15 March 2027.

Pension Board Annual Report 2025-2026

The Board reviewed its annual report for the financial year 2025-26. The report highlighted the Board's role in assisting Tower Hamlets Council in managing the Local Authority Pension Scheme (LGPS) and providing oversight and challenge. It noted that the Board held four hybrid meetings during the year with high attendance rates. The report also detailed the regular updates received by the Board on various aspects of the Pension Fund, including audit progress, risk register monitoring, governance arrangements, engagement strategies, pensions administration performance, staffing, and cash flow. The report acknowledged the significant progress made in improving data quality and addressing backlogs in the pensions administration service, while also noting the ongoing challenges in recruiting and retaining skilled staff. The implementation of the Government's Fit for the Future proposals, which will see all the Fund's assets managed via the London CIV¹, was identified as a major policy initiative. The report reiterated the importance of a structured training and development programme for Board members.

Pensions Administration Report

The Board received an update on the administration and performance of the Pension Scheme for the quarter ending March 2026. The report indicated a significant improvement in workflow statistics, with most tasks being processed within 5-10 working days, and an aim to reduce this to 5 working days. The backlog of outstanding tasks had decreased considerably. The report noted ongoing recruitment efforts, with two trainee pension officers having been recruited due to difficulties in attracting experienced administrators. Updates were also provided on employer admissions and cessations, and progress on the data cleanse project. The report highlighted the introduction of the LGPS (Amendment) (Governance) Regulations 2026, which mandate a Pensions Administration Strategy (PAS), and the LGPS (Amendment) (Elected Member Pensions) Regulations 2026, granting eligible elected members access to the LGPS. Preparations for the MoneyHelper Pensions Dashboards launch were also mentioned, with Tower Hamlets Pension Fund having met its connection deadline. The transition from the Member Self-Service (MSS) system to the new 'Engage' system was underway. Active pension accounts, deferred benefits, and pensions in payment had been uplifted by 3.8% in April 2026, in line with the Consumer Prices Index (CPI).

Scheme Engagement Report

This report provided an update on employer and member engagement activities. The Pension Fund Information Forum (PFIF) aims to inform scheme members and stakeholders about the Fund's operations, governance, funding, and investments, and to explain regulatory changes. The proposed PFIF for 2026 was being rescheduled due to previous cancellations. The report outlined plans for online information sessions and offsite engagement with schools and front-line service areas. A mix of engagement activities was considered effective for boosting scheme membership and promoting the 'Engage' member self-serve portal. The Pension Fund Employer Forum (PFEF) was held on 22 January 2026, with positive feedback received despite low attendance. Officers planned to use future events to support employers with training and resources for data submissions. The report also noted that eligible elected members now have access to the LGPS from 11 May 2026.

Pension Fund Risk Register

The Board reviewed the revised Pension Fund Risk Register, which reflects the implementation of the Government's 'Fit for the Future' reforms to the LGPS and key pensions administration systems. The report highlighted emerging strategic risks associated with the implementation of the LGPS Regulations 2026, the delivery of pooling reforms, the renewal of critical technology systems, and increasing cyber security threats. The register groups risks into six principal categories: Funding and employer, Investment and Pooling, Governance and Oversight, Administration and Systems, Engagement and Communications, and Regulatory and Statutory Compliance. The highest-rated risks were identified in Regulatory and Statutory Compliance, Governance and Oversight, and Administration and Systems. Mitigation actions include monitoring updates from the Department for Levelling Up, Housing and Communities (MHCLG), the Scheme Advisory Board (SAB), and The Pensions Regulator, as well as reviewing committee representation models and updating governance compliance statements and the constitution. The report also detailed risks related to system transitions, cyber security, pensions administration, data quality, pooling implementation, governance reform, and the potential for a poor outcome from an Independent Governance Review (IGR).

Training Events

The Board discussed training events attended by members. The joint board committee training on 29 June 2026 was well-attended. An investment training session on 14 July was also well-received. The Board noted that training materials are available to all members.

Pension Board Work Plan

The Board reviewed its work plan for 2026-27, which will focus on key issues related to governance and compliance, reflecting the emphasis on ensuring compliance with strict regulatory deadlines.