The Pension Board of Tower Hamlets Council met on Monday 4 November 2024 to review several key reports concerning the administration, engagement, risk management, and financial health of the pension fund. The meeting's agenda included updates on the fund's operational performance, strategies for engaging with employers and members, and a detailed examination of potential risks and liquidity forecasts.

Pensions Administration Report – September 2024

The board was scheduled to consider the Pensions Administration Report for September 2024. This report provides an update on the administration and performance of the pension scheme for the quarter ending September 2024. It was intended to inform members about the scheme's membership figures, case processing times, and progress on data quality initiatives. The report also noted upcoming employer admissions and legislative updates relevant to the scheme.

Scheme Engagement and Communications Report

A report on Scheme Engagement and Communications was scheduled for discussion, focusing on strategies for interacting with employers and members. A key element of this report was the planning for a proposed Pension Fund Information Forum to be held in January 2025. This forum aims to provide a platform for communication and consultation regarding the activities and governance of the Tower Hamlets Pension Fund, which had not been held since 2016. The draft agenda for this forum included topics such as the pension fund's annual report, scheme membership and benefits, investment arrangements, funding, and regulatory updates.

Pension Fund Risk Register – September 2024

The meeting was set to review the Pension Fund Risk Register as of September 2024. This report details changes to the register during the quarter and outlines the practice of identifying, analysing, and controlling threats to the achievement of the fund's strategic objectives and operational activities. The report highlighted several risks with severe ratings, including those related to historical errors in member data, the inability to meet legal and performance expectations due to poor data quality from employers, and the implementation of the McCloud remedy¹. Mitigation strategies and control measures for these risks were to be discussed.

Pension Fund Liquidity and Cashflow Monitoring – September 2024

A report on the Pension Fund's liquidity and cashflow forecast for 2024/25 to 2025/26 was on the agenda. This report aimed to inform the committee about the fund's financial position, projecting a positive net cashflow by 2025/26 without the need to divest from investments. The report noted that the fund is forecasting a surplus for the 2024-2025 period and detailed the assumptions behind these forecasts, including contribution income and benefit payments. It also discussed the maturing trend of the Local Government Pension Scheme (LGPS) and the importance of cashflow management.

Pension Board Work Plan

The board was scheduled to consider its Work Programme for 2024/25. This document outlines the proposed agenda items for future Pension Board and Pensions Committee meetings. It also provides information on other workstreams, such as sub-committees, training, and specific requests from the committee and board. The work programme emphasizes the importance of ongoing training and development for members to effectively fulfil their responsibilities.