The Pension Board of Tower Hamlets Council was scheduled to meet on Monday, 4 November 2024, to review several key reports concerning the administration, governance, and financial health of the pension fund. Discussions were planned around the fund's performance in September 2024, its risk management strategies, and its liquidity and cashflow forecasts.

Pension Administration Report – September 2024

The meeting was scheduled to consider the Pensions Administration Report for September 2024. This report provides an update on the administration and performance of the Local Government Pension Scheme (LGPS) for the quarter ending September 2024. It was expected to detail the scheme membership, case types processed, and performance against benchmarks. The report also covers updates on employer admissions, legislative changes, and progress on a data cleanse project aimed at improving the quality of pension data. The report recommended that the Pensions Committee note its contents, the employer admissions in the pipeline, the scheme and legislative update, and the progress on the data cleanse project.

Scheme Engagement and Communications Report

A report on Scheme Engagement and Communications was also scheduled for discussion. This report was intended to update the Pensions Committee on employer and member engagement activities and provide details on the planning for a proposed Pension Fund Information Forum in January 2025. The report recommended that the Pensions Committee note its content, consider the draft agenda for the proposed forum, and acknowledge that officers were consulting with internal stakeholders and external service partners. The draft agenda for the forum included topics such as the Pension Fund annual report, scheme membership and benefits, investment arrangements, funding and solvency, investment performance, and the interaction between the administering authority and participating employers.

Pension Fund Risk Register

The Pension Board was set to review the Pension Fund Risk Register as of 30 September 2024. This report details changes to the register during the quarter and outlines the practice of identifying, analysing, and controlling threats to the fund's strategic objectives and operational activities. The report recommended that the Pensions Committee note the detailed Risk Register. The register itself identified numerous risks, including those related to historical errors in member data, the inability to meet legal and performance expectations due to poor data quality, and the implementation of the McCloud remedy. Other risks discussed included potential material misstatements in accounts, increased liabilities due to market yields and inflation, and the risk of investment strategies failing to deliver appropriate returns.

Pension Fund Liquidity and Cashflow Monitoring

The meeting agenda included a review of the Pension Fund Liquidity and Cashflow Monitoring report for September 2024. This report provides a forecast of the fund's liquidity and cashflow for the period 2024/25 to 2025/26. It was anticipated that the fund would forecast a positive net cashflow by 2025/26 without needing to divest from investments. The report recommended that the Pensions Committee note the liquidity and cashflow forecast. The forecast indicated a projected positive net cashflow of £10.6 million by 2025/26, with a surplus of £2.5 million anticipated for 2024-2025, assuming no divestments or capital calls in the remaining six months of the year.

Pension Board Work Plan

The Pension Board's Work Plan for 2024/25 was also scheduled for consideration. This document outlines the proposed agenda items for future Pension Board and Pensions Committee meetings. It also provides information on other work programmes outside of main meetings, such as sub-committees, panels, and working groups, as well as proposed training and requests from the Committee and Board members. The report recommended that the Pensions Committee note the content of the work programme, consider the proposed programmes for both the Committee and the Board, and acknowledge that officers would be providing updates on training and events.

Pensions Committee Agenda for the Forthcoming Meeting

The agenda also included a review of the Pensions Committee's agenda for its upcoming meeting. This item typically involves considering the draft agenda and summary minutes of the last Pensions Committee meeting, providing an opportunity for the Pension Board to scrutinise the work of the Pensions Committee.

Training Events

A discussion on training events was also listed on the agenda. This would likely involve reviewing upcoming training opportunities for Board members and considering their participation in these events, as well as providing feedback on training already undertaken.

The meeting also included standard procedural items such as apologies for absence, declarations of interest, and the confirmation of minutes from previous meetings. A portion of the meeting was designated for exempt business, where the press and public would be excluded.