Here's a summary of the Tower Hamlets Pension Board meeting:

The Tower Hamlets Pension Board convened to discuss key reports and updates concerning the management and performance of the pension fund. The board reviewed the pension administration, scheme engagement, risk register and annual accounts, and also addressed the implications of upcoming changes to the Local Government Pension Scheme.

Pension Fund Risk Register

The board received an update on the Pension Fund Risk Register, and heard from Victoria Lewis, the council's risk officer, about risk management. She explained that risk management is a cycle consisting of five steps: setting the stage, identifying and analysing risks, assessing and prioritising them, planning responses, and monitoring and reporting.

Victoria Lewis told the board that across the council, there were 250 risks recorded across all levels of the risk registers, and that the council used a five by five matrix to score risks.

Board members raised concerns about the register, including:

• The number of risks listed (28), with a suggestion that the register should focus on the 12 most important risks.
• The colour coding used in the register, which uses four colours rather than the usual three ('red, amber, green').
• The fact that one officer, Paul Audu, Head of Pensions and Treasury (Interim), was named as responsible for 50-60 control measures.
• The cyber security risk entry point of nine, which was felt to be too low.
• The passive nature of some of the control measures listed, with members requesting better definition of intervention measures.

Victoria Lewis agreed with the board's concerns, and said that she and Paul Audu had a meeting planned to review the register. She also clarified that the three lines of defence described were all internal, and that the external auditor was a fourth measurement of reassurance.

Alcine, who is not further identified, added that the independent advisor to the committee had been providing feedback on the risk register.

The board agreed to receive a new risk register at its next meeting.

Pension Administration Report

The board reviewed the Pensions Administration Report, which provided information on the administration and performance of the scheme.

Key discussion points included:

• An increase in deferred and undecided members, with a query raised about the reasons for staff opting out of the scheme. Raju Ahmed, Pensions Administration Team Leader, explained the team were taking steps to educate people about the benefits of having a pension, and that the pension website had been updated to encourage people to reconsider opting out.
• The number of outstanding cases for 'general correspondence' and 'benefit revision'.
• The number of cases expected to be affected by the McCloud judgement¹.
• The progress of the GMP reconciliation² project and the launch of the new website.

Scheme Engagement and Communications Report

The board considered the Scheme Engagement and Communications Report, and David Stephen Thompson, representing Retired/Deferred Pension Fund Members, reiterated the need to promote the benefits of the scheme to employers. The board voiced their support for the engagement and looked forward to the planned Pension Fund Employer Forum in October 2025.

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

The board discussed the government's response to the 'Fit for the Future' consultation, which outlined the government's intent to reshape the LGPS. Councillor Musthak Ahmed, (Cabinet Member for Jobs, Enterprise, Skills and Growth), asked about the costs attached to the transfer of funds to the London Collective Investment Vehicle (LCIV) by March 2026, and Paul Audu confirmed that there would be costs.

David Stephen Thompson asked what was meant by local investment, and Paul Audu clarified that the government's reference to local investment meant the whole of the United Kingdom.

John Gray, (Representing Active Admitted/Statutory Bodies Pension Fund Members), said that as Tower Hamlets would retain the liability for the investments, there had to be better scrutiny of LCIV.

LGPS 'Access and Fairness' Consultation

The board considered the LGPS 'Access and Fairness' consultation, and Mr Jones commented that this tied into the earlier discussion about understanding the reasons for opt-out. Paul Audu said that work was ongoing in this area and they were looking to improve the engagement with those who opt out of the scheme.

Annual Benefits Statements

The board were given an update on the production and distribution of annual benefit statements, and had no questions on the report.

Training Events

Mr Jones requested action be taken regarding the earlier comments about training events, and said he looked forward to the progress made at the next meeting.

Pension Board Work Plan

David Stephen Thompson requested that the Pension Board have sight of the quarterly investment report, and Paul Audu agreed to provide the previous agenda for the Pensions Committee to the board members.

David Stephen Thompson also said that the transition of funds to the LCIV in March 2026 meant the review of the Investment Strategy Statement (ISS) for 2026/27 was essential, and Paul Audu responded saying that the ISS needed to be in sync with the Financial Strategy Statement (FSS) and feedback from the triennial valuation also had to be taken into account.

Other Business

No other business was discussed.

Exclusion of Press and Public

The press and public were excluded from the meeting for the consideration of the Section Two business.

Governance Report

Paul Audu stated the report updated members on the instances where a statutory duty has been or may have been, breached under the LGPS or Pensions Action 2004 and is reported to the Pensions Regulator.

Pension Fund Quarterly Liquidity and Cashflow Monitoring

Mr Jones said the report informed members about the current position relating to the Pension Fund liquidity and cashflow position as at 31st March 2025 plus the forecast for 2025/26.

Pension Fund Closing 2024/25 and External Audit

Mr Jones stated the report provided an update on the 2024/25 Pension Fund year-end closing and preparation of the Draft Pension Fund Annual Report and Accounts as well as the ongoing external audit work by EY LLP³.