The Newham Pensions Board met on Tuesday 24 June 2025 to discuss the pension administration report and legislative updates, performance updates, the 2025-26 budget for pension administration services, and an update on employer admissions. The Board noted the reports presented and agreed to the recommendations made.

Pensions Administrative Report and Legislative Update

Jacqui Andress, the Pension, Project & Contracts Manager, presented a report on the current status of the Newham Pension Fund's administration and recent legislative changes affecting the Local Government Pension Scheme (LGPS). The Board was informed that the final regulations for the McCloud remedy, which addresses age discrimination in pension schemes, have taken effect from 1 October 2023. The mechanics for rectifying this involve comparing a member's benefits under the old regulations with those under the current regulations and awarding the higher amount. LPPA (Local Pensions Partnership Administration) is now including data on McCloud additions in their monthly reports. As of the April report, calculations had been run for 35 eligible Newham records, with one addition awarded amounting to £356 per annum. This figure is comparable to other funds administered by LPPA, where approximately 4% of eligible cases have received additions. LPPA has been asked to confirm the accuracy of these figures, given the increasing number of case types being reviewed. The Board noted the report.

Performance Update

James Grafton, the Pension Administration Officer, presented the performance report from LPPA for the fourth quarter of 2024/25 (1 January to 31 March 2025). Key performance indicators showed an increase in overall fund membership. Performance against Service Level Agreements (SLAs) had stabilised, remaining above the 95% target, with all case types exceeding this. While the overall number of completed cases and cases received by LPPA increased, helpdesk performance fluctuated, with 70% of calls answered within four minutes, a slight decrease from the previous quarter. Customer satisfaction levels also varied, ending the quarter at 84.8% satisfied, with an increase in the number of surveys taken. The number of members registered on the online portal, PensionPoint, increased by 529 from the previous quarter. In April 2025, there were no complaints, but the volume of complaints per thousand members (1.1) was still higher than the target of one. Three breaches were reported in April: two related to data security and one to a code of practice breach. The Board noted the performance data.

Pension Administration Service 2025-26 Budget Report

James Cocks, Assistant Director of Transactional People Services, presented the proposed pension administration budget for 2025-26, which totals £1.090 million. This represents an increase of approximately 12% on the previous year's budget. The increase is attributed to a rise in membership numbers and an increase in the price per member. Factors contributing to the price increase include inflationary pressures, the rise in National Insurance contributions for employers, service development, data quality initiatives, and legislative and compliance requirements such as the McCloud remedy and the upcoming Pensions Dashboard. LPPA's costs are based on full cost recovery, meaning any surplus or deficit is adjusted at the end of the financial year. Benchmarking data from CEM and LGPS fund account returns indicates that Newham's administration costs are in the medium range compared to other funds. The Board noted the budget proposal and provided comments before it was presented to the Pension Committee for approval.

Employer Update Report

James Cocks also presented a report on proposed changes to the Newham Pension Fund Admission policy and the latest position regarding employer admissions. The report highlighted that a significant number of employers have been struggling to obtain the required bonds or guarantors for admission into the fund, which has been a barrier to progress. To address this, the updated Admission Policy proposes a pass-through arrangement as the primary route for academies and schools, where funding risks are shared between the employer and the letting authority. This is expected to simplify the admission process and make it easier for academies to tender for contracts. The policy will be circulated for consultation with employers, including schools and academies, before being presented to the Pension Committee for approval. The report also detailed the slow progress in concluding admissions, with only one admission cleared since the last board paper. However, efforts to encourage alternative arrangements like pass-throughs have shown some progress, and a good number of admissions are anticipated in the coming months. The Board noted the proposed changes to the Admission Policy and the latest position on employer admissions.