The Pensions Committee of Tower Hamlets Council met on Thursday 1 October 2026 to discuss the administration and performance of the pension fund, review strategic risks, and consider updates on regulatory reforms. Key decisions included noting progress on the data cleanse project, endorsing the proposed strategic risk architecture, and approving the draft Pension Fund Annual Report and Accounts for 2025/26, subject to audit completion.

Pensions Administration Report

The committee received an update on the administration and performance of the pension scheme for the quarter ending 30 June 2026. Paul Audu, Interim Head of Pensions and Treasury, highlighted a substantial reduction in the backlog of outstanding tasks, with most now being completed within five to ten working days. The team has recruited two trainee pension officers through an apprenticeship programme to address challenges in attracting experienced staff. The report also noted progress on the data cleanse project, with underpayments processed and overpayments being resolved. The committee resolved to note the report, employer admissions, scheme and legislative updates, and progress on the data cleanse project.

Scheme Engagement Report

Paul Audu also presented the Scheme Engagement Report, detailing efforts to engage with employers and members. The report outlined plans for a Pension Fund Annual Information Forum on 26 and 27 October 2026, aimed at informing members about scheme benefits, governance, funding, and investments. The committee noted the report, employer engagement activities, the proposed forum agenda, and upcoming engagement on the Investment Strategy Statement (ISS). A clarification was sought and provided regarding elected members' automatic access to the Local Government Pension Scheme (LGPS), confirming they have an automatic right to join but can opt out.

Pension Fund Risk Register

The committee reviewed the Pension Fund Risk Register, which identifies principal risks, including those arising from the 'Fit for the Future' reforms, key pension systems, and divestment considerations. Colin Robertson, Independent Investment Advisor, emphasised the importance of a broad strategic risk framework, suggesting that a more detailed register could miss emerging risks. The committee endorsed the proposed strategic risk architecture and agreed that the register would be reviewed quarterly. Key strategic risks highlighted included those related to pooling implementation, governance reform, critical pension systems, and the tension between local investment and responsible investment expectations.

LGPS Fit for the Future - Regulatory Implementation Roadmap (Update)

An update was provided on the LGPS 'Fit for the Future' reforms, detailing the legislative and regulatory framework and the implementation roadmap. Paul Audu explained that the Fund must operate within the new 'Fit for the Future' requirements and collaborate with the London Collective Investment Vehicle (LCIV) to influence policy. Steve Turner, Senior Investment Consultant from Marsh, advised the committee to seek representation on LCIV steering groups to ensure their voice is heard. The committee noted the progress on the roadmap and requested quarterly implementation reports. They also noted proposed amendments to the Council's Constitution to align with the new regulatory framework.

Pension Fund Closing 2025/26 and External Audit

The committee received an update on the closure of the Pension Fund accounts for the year ending 31 March 2026 and the progress of the external audit. Paul Audu confirmed that the audit was at an advanced stage and that the draft Pension Fund Annual Report and Accounts for 2025/26 was presented for approval, subject to the completion of the audit. The committee approved the draft report and accounts and delegated authority to officers to approve any non-material amendments required for publication by the statutory deadline of 1 December 2026.

Training Events

This was a standing item on the agenda, with Paul Audu confirming that training opportunities would be provided as needed. He encouraged committee and board members to utilise the LGPS Online Learning Academy (LOLA) for bite-sized training modules.

Pensions Committee Work Plan

The committee noted the work plan for 2026/27. Discussions clarified that the Investment Strategy Statement (ISS) is part of the broader 'Fit for the Future' strategy and needs to be agreed by 31 March 2027. The inclusion of steering group engagement in the work plan was also discussed as part of the ongoing relationship with LCIV.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the remainder of the meeting for the consideration of restricted items, as these contained exempt information.

Restricted Minutes of Previous Meetings

The committee agreed and approved the restricted minutes of the previous meetings held on 30 July 2026 and 15 September 2026.

Governance Report

An update was provided on instances where statutory duties may have been breached under the LGPS or Pensions Act 2004. The committee noted the reports on breaches of law to the Pensions Regulator and was advised that no further updates were required from officers.

Quarterly Investment Report - 30 June 2026

The committee received information on the Pension Fund's investment activities and performance for the quarter ending 30 June 2026. They noted the monitoring report from Marsh and the update from the Independent Adviser, Colin Robertson.

Pension Fund Quarterly Liquidity and Cashflow Monitoring

This report informed the committee about the Pension Fund's liquidity and cashflow for 2026/27, including actual figures for the first quarter and forecasts for the remaining quarters. The committee noted the report.