The Pensions Committee of Tower Hamlets Council met on Thursday 30 July 2026 to discuss the divestment of pension funds from companies involved in human rights violations, review the pension fund's risk register, and address administrative and engagement matters. Key decisions included noting the draft pension fund risk register and requesting a quality-assured version for approval in October, and agreeing to continue with the proposed Pension Fund Information Forum agenda.

Divestment from Companies with Human Rights Violations

Councillor Suluk Ahmed, Chair of the Pensions Committee, opened the meeting by highlighting the council's ongoing efforts to divest the pension fund from companies complicit in human rights violations. This initiative builds upon previous motions passed by the full council in January 2025 and July 2026, and responds to repeated calls from residents and trade unions. Councillor Abu Talha Chowdhury, Cabinet Member for Finance, Assets and Governance, provided further context, explaining that a letter had been sent to the Head of Pension Treasury and Corporate Director for Resources requesting action. He outlined the resolutions from the recent full council meeting: to request an audit of the fund's exposure to identified companies, update the investment strategy statement, and consult with trade unions and pension scheme members on divestment. Councillor Jonathan Purcell reiterated the urgency of the matter, citing overwhelming support from the full council and the council's legal obligations.

Pension Fund Risk Register

The committee reviewed the draft Pension Fund Risk Register for June 2026. Paul Audu, Head of Pensions and Treasury, presented the report, noting that the register identified 32 current risks across six categories. He proposed that instead of unqualified approval, the committee should note the draft register and request a completed and quality-assured version for approval at the meeting on 1 October 2026.

During the discussion, Councillor Saied Ahmed raised questions about the risk scoring system, comparing it to reports from the housing department and asking for clarification on whether the current risk score of 12 would fall into the amber or red section of a risk chart. It was confirmed that a score of 12 would be considered amber, or medium risk. Concerns were raised about the allocation of risks to a single officer and the clarity of mitigation strategies. Richard Ennis, Interim Corporate Director for Resources, acknowledged the points made and suggested that external expertise might be utilised to improve the quality and speed of the risk register's completion. Colin Robertson, Independent Advisor to the Fund, commented that the register was very ambitious and suggested a simpler, broader version would be more effective initially. The committee agreed to note the comments and requested that a heat map format be considered for future presentations of the risk register.

Regarding the risk register, Councillor Saied Ahmed inquired about its impact on auditors and whether it should be reported to the Audit Committee (MAB). Richard Ennis confirmed that the risk register would influence the audit process and that occasional reports to MAB would be beneficial.

The committee was asked to note and agree the recommendations on page 43 of the agenda concerning the risk register.

Pensions Administration Report

The committee received an update on the administration and performance of the pension scheme for the quarter ending March 2026. The report detailed scheme membership, case processing times, and progress on the data cleanse project. It was noted that while recruitment of experienced administrators remained a challenge, two trainee pension officers had been recruited. The report also highlighted the ongoing work with Lumera on the data cleanse project, with a revised completion date of 31 August 2026. Updates were provided on employer admissions and cessations, as well as scheme and legislative updates, including the introduction of mandatory Pensions Administration Strategies and the eligibility of elected members to join the LGPS. The committee was also informed about preparations for the MoneyHelper Pensions Dashboards launch and the transition from the Member Self Service portal to the new 'Engage' system. The Pensions Increase for 2026 was confirmed at 3.8%. The committee was recommended to note the content of the report, employer admissions, the scheme and legislative update, and progress on the data cleanse project.

Scheme Engagement Report

This report provided an update on employer and member engagement activities. It detailed the purposes of the Pension Fund Information Forum (PFIF) and the Pension Fund Employer Forum (PFEF), emphasizing their role in transparency, accountability, and stakeholder communication. The report noted that the PFIF, originally scheduled for March 2026, had been cancelled and officers were working to identify new dates. The agenda for the proposed forum was agreed, aligning with new regulatory and policy environments. The report also highlighted the positive feedback from the Pension Fund Employer Forum held in January 2026, despite low attendance, and indicated a demand for regulatory bulletins and data workshops. The committee was recommended to note the report, the employer engagement activities, agree the draft agenda for the PFIF, and agree that an annual engagement performance report be presented going forward.

Pension Board Annual Report 2025-26

John Jones, Independent Chair of the Pension Board, presented the board's annual report for 2025-26. He highlighted the board's support for the proposals for employer and employee engagement and noted the continued improvement in pensions administration performance. The report also detailed the board's review of the risk register, which was described as a work in progress. The board supported the proposals for training and development for committee and board members, suggesting joint training opportunities. The successful completion of the Data Cleanse project was welcomed. The committee was recommended to note the report.

Other Business

The committee also formally elected Councillor Saied Ahmed as Vice Chair. The minutes of the previous meeting held on 9 March 2026 were approved. No petitions were received. The committee noted the Pension Committee Work Plan and agreed that requests made during the meeting regarding the work plan would be reflected. The meeting concluded with the exclusion of the press and public for the consideration of exempt information.