The Pensions Committee of Newham Council met on Wednesday 21 October 2026 to discuss updates on pension administration, business plans, and investment strategies. Key discussions included the implications of new pension legislation, the performance of the London CIV asset pool, and the fund's financial position.

London CIV Update and Pension Legislation

Representatives from the London CIV, Jenny Buck (Chief Investment Officer) and Wasil Mohar (Client Relations Manager for Newham), provided an update on the organisation's role following new pension legislation. They explained that while the London CIV, or LSIF, will handle more day-to-day investment work, Newham Council, as the partner fund, remains responsible for strategic decisions such as setting objectives, asset allocation, and responsible investment policies. New regulations require the appointment of a dedicated senior LGPS officer and an independent person by the end of the calendar year to aid oversight. The London CIV will become the principal source of investment advice, and all assets must be moved under its management, a requirement already met by Newham through its investment management agreement.

The committee also heard about the requirement for partner funds to set a local investment objective. The London CIV's vision for local investment is to deliver financial returns, support strategic initiatives in the wider London region, attract third-party investment, and leave a positive legacy through disciplined and effective investments. They aim to launch an investable product in early 2027.

Councillor John Gray, Vice Chair of the committee, sought clarification on whether a representative from the London CIV would attend all future pension committee meetings, to which the response was affirmative. He also enquired about the possibility of a general meeting for all councillors to engage with the London CIV, and was informed about their annual conference.

Councillor Joe Hudson-Small raised concerns about gaps between the London CIV's offerings and Newham's strategic objectives, particularly on climate and ethical investment. Jenny Buck explained that while the London CIV aims to meet partner fund requirements, the pooling nature means some bespoke past arrangements may not be possible. She highlighted existing reports on stewardship, TCFD (Task Force on Climate-related Financial Disclosures), and nature and biodiversity.

Councillor Heather Lafferty questioned the threshold for creating bespoke investment packages within the sieve arrangement, particularly in light of several councils passing motions related to the BDS movement. Jenny Buck explained the development of an RI (Responsible Investment) matrix with three exclusion policy options, emphasising the need to balance partner fund expectations with legal frameworks and the time required for fund creation.

Councillor Grace enquired about the timeline for local investment strategies, noting a September 2026 deadline, which was clarified as March 2027. The committee was informed that initial details for this would be presented by December.

Pensions Administration Update

James Cocks, Assistant Director of Transactional People Services, presented the Pensions Administration Update. He noted a decrease in active members, particularly within maintained schools, and outlined plans for more targeted communication. Overall performance against SLAs (Service Level Agreements) was reported as exceeding 95%, with retirements and deaths performing well. However, call centre wait times had slightly exceeded the four-minute target, attributed partly to bank holidays and the Easter period. The self-service module, PensionPoint, saw a significant increase in usage.

Councillor Nizam Ali raised concerns about late retirement notifications, with 10 out of 11 instances being late. The rationale provided was that employers often delay notifying LPPA until an employee has officially left, due to payroll processing timelines. This can lead to members not receiving their pension the month after leaving, sometimes resulting in a two-month wait. Officers agreed to investigate potential action plans to improve this process.

Member satisfaction scores had seen a slight drop, which was partly linked to call centre wait times, particularly around bank holidays. The low response rate to surveys was also highlighted as a factor affecting the statistical significance of the satisfaction figures.

Councillor John Gray raised the issue of outstanding admission agreements, noting a reduction from 29 to 14, but a lack of further progress since July. The barriers identified included difficulty accessing letting authorities during school holidays and the complexity of data management for admissions on top of admissions cases. Officers estimated a six to nine-month timeframe to resolve the remaining cases.

Regarding legislative updates, James Cocks mentioned the Pension Schemes Act 2026, which introduces requirements for a Senior LGPS Officer, an Independent Person, and independent governance reviews. A training strategy will be developed to ensure members and officers have the necessary knowledge and understanding. Updates on Access and Fairness regulations were also provided, including the equalisation of survivor benefits and the removal of the age 75 cap for death grants. The reinstatement of LGPS access for councillors and mayors was noted, with 18 elected members having joined the scheme since August. Changes to transfer out rules and the consolidation of academies were also discussed.

Councillor Ali asked about communication plans for the increase in the minimum pension age from 55 to 57, expected from April 2028. LPPA will manage communications, with employer updates also planned. It was noted that legislation does not dictate a minimum notice period, but internal management would aim to provide adequate communication to avoid members being caught unaware.

Investment Strategy Update

Rakesh Rajan, Pension Fund Manager, presented the Investment Strategy Update. He reported that as of 30 June 2026, the fund's asset valuation reached £2.2 billion, the highest ever recorded, with an increase of over £166 million from the previous quarter, despite market volatility. The estimated funding surplus was £117 million, with a funding level of 106%, an improvement from the previous valuation.

Councillor Joe Hudson-Small raised concerns about exposure to complex financial arrangements and potential AI bubble risks. Pete Smith, Investment Adviser from Barnett Waddingham, explained that mitigation strategies include diversification across asset types and styles, and the current surplus provides a buffer. He described the outlook for equities as cautiously negative over a two-year horizon. The move to the SIV (Strategic Investment Vehicle) means asset allocation implementation is now the responsibility of the London CIV.

The committee noted the report on the fund's investment performance, including the funding update as at 30 June 2026. They also agreed the draft Pension Fund Annual Report 2025-26, delegating any audit-related changes to the Section 151 Officer in consultation with the Chair.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the meeting for specific items of business, namely the Investment Strategy Report Exempt Item and Exempt Minutes of the Last Meeting, in accordance with Section 100(A)(4) of the Local Government Act 1972. This was stated as standard practice for private sessions.

Date of Next Meeting

The date of the next Pensions Committee meeting was confirmed as 16 December 2026 at 7:00 pm at Newham Town Hall.