At a meeting of the Tower Hamlets Pension Board, Councillor Musthak Ahmed was appointed as the new Vice-Chair, and members discussed key issues including the government's response to the LGPS consultation, scheme engagement, risk management, and the upcoming annual benefit statements. The board agreed to note several reports and endorsed actions to address data quality, member engagement, and compliance with regulatory changes.

Here's a breakdown of the key discussion points:

Appointment of Vice-Chair

Councillor Musthak Ahmed was appointed as the Vice-Chair of the Pension Board for the 2025-26 municipal year, succeeding Councillor David Thompson, Representing Retired/Deferred Pension Fund Members, who was thanked for his service.

Pension Board Terms of Reference

The board reviewed and agreed to the terms of reference, membership, quorum, and meeting dates for the 2025-26 municipal year. Councillor David Thompson requested an update to the wording of the quorum requirements, which was referred to the General Purposes Committee for approval.

Pension Administration Report

The board discussed the Pensions Administration Report - March 2025, focusing on deferred and undecided members and measures to encourage scheme participation. Mr Raju Ahmed, Pension Administration Team Leader, outlined steps to educate people about the importance of having a pension, including updates to the pension website.

The board also noted the number of outstanding cases for 'general correspondence' and 'benefit revision', and the progress of the GMP Rectification project, with a new website expected by the end of August.

Scheme Engagement and Communications

The board reviewed the Scheme Engagement and Communications Report, supporting efforts to promote the benefits of the scheme to employers. Councillor David Thompson emphasised the need to prioritise membership and benefits in engagement activities.

Pension Fund Risk Register

The board discussed the Pension Fund Risk Register - 31 March 2025, raising concerns about cyber-attacks and the allocation of risks to a single officer. Mr John Gray, Representing Active Admitted/Statutory Bodies Pension Fund Members, highlighted the need for better scrutiny of the London CIV, given Tower Hamlets' continued liability for investments.

Mr John Jones, Independent Chair, requested officers re-examine the risk register and include better mitigation measures.

Government's Response to the 'Fit for the Future' Consultation

The board reviewed the government's response to the 'Fit for the Future' consultation, which outlines reforms to the LGPS, including mandatory pooling, local investment requirements, and governance enhancements.

Mr John Thompson asked about the definition of local investment, and Mr Paul Audu, Interim Head of Pensions and Treasury, clarified that it referred to the whole of the UK. There was also discussion of the costs associated with transferring funds to the London CIV.

Mr John Jones enquired about representation at the London CIV summer conference, and it was agreed that Mr Paul Audu would investigate whether the Chair of the Pension Board could attend.

LGPS 'Access and Fairness' Consultation

The board discussed the LGPS 'Access and Fairness' Consultation, which proposes changes to improve accessibility and fairness within the scheme. Mr John Jones linked this to the earlier discussion about understanding the reasons for opting out of the scheme.

Annual Benefits Statements (ABS) 2025

The board reviewed the report on Annual Benefits Statements (ABS) 2025, noting that statements must be produced by 31 August 2025.

Work Programme

The board reviewed the Pension Board and Committee workplan, requesting sight of the quarterly investment report and emphasising the importance of reviewing the Investment Strategy Statement (ISS) given the transition of funds to the London CIV.

Training Budget

Mr Ahsan Khan, Corporate Head of Financial and Technical, confirmed that there was a training budget for the Pensions Board and said Mr Paul Audu would investigate this further.

Restricted Business

Following the exclusion of the press and public, the board discussed restricted business, including the governance report, pension fund quarterly liquidity and cashflow monitoring, pension fund closing, and an update on pension fund divestment and exclusion considerations.