The Havering Council Pensions Committee met to discuss the performance of the pension fund, note a McCloud remedy administration update, and review LGPS updates. The committee noted the McCloud administration update and agreed the recommendations set out in the agenda. The fund's assets increased to $1.086 billion, with an overall fund performance of 3.46% for the quarter.

Pension Fund Performance Monitoring

The committee reviewed the pension fund's performance for the quarter ending June 2025. Debbie Ford, Pension Fund Manager (Finance) reported that the total value of the fund's assets had increased from $1.0451 billion to $1.086 billion. The overall fund performance was 3.46% for the quarter, outperforming the tactical benchmark¹ by 0.18% and the strategic benchmark² by 2.18%.

The increase in value is primarily due to the Fund's allocation to 'Growth' assets – as equities gained and markets recovered, following softening of US trade policies.

The committee considered the Hymans Performance Report (Appendix A) and received a presentation from JP Morgan, the Funds Global Infrastructure Manager (Appendix B). They also considered the quarterly reports from each fund manager and noted the analysis of cash balances.

McCloud Remedy

The committee noted an update regarding the McCloud remedy. The fund has applied its discretion to delay the implementation of the McCloud remedy until 31 August 2026. This decision, made via a non-key executive decision after consulting with fund officers and the Local Pensions Board, allows the fund to delay including McCloud remediable service information in the Annual Benefit Statements (ABS) until the 2025/26 scheme year. The primary reasons for the delay were data collection and the need for appropriate software to calculate the benefits.

The decision will be noted on affected members' benefit statements and published on the Havering Council website.

LGPS Updates

The committee received updates on several matters related to the Local Government Pension Scheme (LGPS):

• Access and Fairness Consultation: The Ministry of Housing, Communities and Local Government (MHCLG) launched a consultation on LGPS regulations to promote 'access and fairness' to scheme members. The consultation included proposals on survivor benefits, the gender pay gap, and opting out of the scheme. Havering Council did not respond to the consultation, relying on the joint response submitted by the Local Government Association (LGA) and the Local Government Pensions Committee (LGPC).
• Fit for the Future - LCIV Pooling update - Pensions Schemes Bill: The Pension Schemes Bill had its second reading in the House of Commons on 7 July 2025. The committee met on 2 September to scrutinise the bill and is due to report its findings by 23 October.
• State Pension Age: The government has launched its third review of the state pension age (SPA). Any changes to the SPA will affect the cost of Career Average Revalued Earnings (CARE) benefits in the LGPS.

LOLA Training

The committee received a reminder to complete their LGPS Online Learning Academy (LOLA) training. Sarah Bryant reminded members to complete the training modules within six months of joining the committee. She offered to send out an email detailing who had completed which modules.