The Newham Pensions Board met on Tuesday 25 November 2025 to discuss a range of updates concerning the administration and performance of the Newham Pension Fund. Key topics included legislative updates impacting the Local Government Pension Scheme, the fund's annual report and business plan, and progress towards full compliance with the Pensions Regulator's Code of Practice. Decisions were made regarding the approval of the Pension Administration budget and the Admissions Policy.

Pensions Administration and Legislative Update

Jacqui Andress, Pension, Project & Contracts Manager, provided an update on the administration of the Newham Pension Fund and recent legislative changes affecting the Local Government Pension Scheme (LGPS).

Regarding the McCloud judgement¹, which addresses age discrimination in public sector pensions, the Local Pension Partnership Administration (LPPA) is still undertaking calculations to complete the project. This includes reviewing previously paid transfers that may now be eligible for the underpin ² – a calculation to ensure members receive the higher benefit amount between old and new regulations. Due to the complexity of some cases, particularly those completed years ago, full system functionality for all calculation types is still under development. This complexity meant that the necessary functionality for annual benefit statements was not ready by the August deadline. Consequently, the Council exercised its discretion to extend the deadline for completing McCloud calculations to 31 August 2026. LPPA is now recalculating benefits for members who left and had their pensions put into payment years ago, and notifying the fund of any arrears. Currently, no Newham Pension Fund members have been identified as having pension arrears.

On the Exit Cap³, there remains no indication of whether a cap on payments to members leaving local government employment will be reintroduced.

Concerning the Pensions Dashboard⁴, the deadline for public sector schemes to connect was 31 October 2025. However, LPPA's software developers, Civica, discovered an issue that prevented connection by the deadline. The Pensions Regulator has been informed and does not consider this a breach, as LPPA is demonstrating ongoing efforts to resolve the issue. The error is expected to be fixed within the next few weeks, with connection anticipated shortly after. Public access to the dashboard is not expected until the first half of 2027, meaning this delay will not impact members.

Two consultations on LGPS Regulations have taken place. The first closed on 7 August, and the Board is awaiting responses from the Ministry of Housing, Communities and Local Government (MHCLG). A second consultation, launched on 13 October, covers:

• An increase in the minimum pension age to 57 from 55, with protected age 55 depending on when a member joined the scheme.
• The reopening of the pension scheme to elected mayors and councillors from 1 April 2026.
• Allowing academies to move pension funds to centralise admissions, which could create significant administrative work.
• Changes to the process for admitting new employers into the pension fund, which closely align with Newham's current approach.

The Oasis Academy Trust⁵ is being allowed to centralise all its academies into one fund. This will result in Newham losing one Oasis Academy to a different fund. The impact on the pension fund will be assessed once the actual impact is known.

The triennial valuation⁶ of the fund has concluded positively, with draft contribution rates expected to be sent to employers next month.

Regarding the Risk Register⁷, there are no major changes to report. The admissions policy has been updated to mitigate risk 1.6 (control reference 1.6g).

Under the Employer Work section, three new employers have been admitted into the fund, with a couple more nearing completion.

The Pension Fund Annual Report will be a separate agenda item.

During the discussion, concerns were raised about recurring technical issues with LPPA's McCloud functionality and the Pensions Dashboard. It was explained that LPPA uses Civica's system, and many other funds using the same or different systems have experienced similar McCloud delays due to tight timelines and complexity. Officers confirmed that financial implications were minimal, with only a potential for a small amount of additional interest on late payments, and no affected members had been identified yet. Members requested that officers urge LPPA to prioritise resolving these issues and provide updates on progress.

Board Annual Report and Business Plan

James Cocks, Assistant Director of Transactional People Services, presented the final versions of the Annual Report and Business Plan for publication. These documents will be incorporated into the fund's overall Annual Report. Updates related to McCloud and the Pensions Dashboard are covered within the Business Plan's adherence to regulations. Specificity regarding governance activities, particularly the Code of Practice gap analysis, will be included.

Pension Fund Annual Report

Rakesh Rajan, Pensions Manager, introduced the Pension Fund Annual Report. Despite volatile markets, the fund closed at £1.36 billion, an increase of £39 million from the previous year, marking its highest recorded value. Investment returns were influenced by UK/US elections, tariffs, and inflation concerns. The fund ranked as the 10th highest performer in London, with an overall return of 3.9% for the year.

Significant reforms to LGPS investment management are being introduced through the 'Fit for Future' consultation, requiring 100% of assets to be pooled into a designated vehicle by 31 March 2026. The London Collective Investment Vehicle (LCIV), one of the six UK pools, has received positive feedback and is coordinating 32 funds, with Buckinghamshire set to join, making it 33. Currently, 63% of Newham's assets are pooled with the LCIV. The fund has reviewed its equity holdings and appointed a new Global Active Equity Value Manager, the Wellington fund, within the LCIV. The outlook for 2025-26 prioritises asset pooling with the LCIV and preparation for the Pensions Bill, expected to become law in 2027.

The triennial valuation has been finalised, and preliminary results suggest lower contribution rates for employers from April due to the fund's strong performance. Sustainable investment monitoring (ESG policy) will be integrated with the LCIV's policies. Training for all Board and Committee members on accounts and the Annual Report is being planned.

Concerns were raised about the underperformance of actively managed funds within the LCIV compared to un-pooled assets and index trackers. Officers explained that the fund had reduced its holding in one active manager and appointed another to complement the strategy and reduce risk. Private markets (private equity and debt) have performed well and are crucial for income generation in a mature fund. The strategic asset allocation is under review before full transition to the LCIV. CBRE remains the preferred partner for property fund management, with holdings primarily in global property funds.

Pension Committee Update

Jacqui Andress provided an update from the Pension Committee meeting held on 8 October 2025. Key discussions included the Pensions Administration Update (covering McCloud and Pensions Dashboard delays), the Pension Administration Service Budget (approved with conditions to monitor LPPA performance and challenge cost increases), the Admissions Policy (agreed and published), Freedom of Information (FOI) requests regarding fund investments, and updates on the Pension Fund Business Plan and Investment Strategy implementation. The Committee expressed concerns about the delays and lack of detail regarding the Pensions Dashboard and McCloud, with officers seeking further explanations from LPPA. It was suggested that LPPA be invited to future Pension Board meetings to discuss operational risks and mitigation strategies. The resource impact of responding to specific FOI requests was noted as a potential addition to the Risk Register.

tPR Code of Practice Full Compliance

Jacqui Andress presented the plan for the Newham Pension Fund to achieve full compliance with the Pensions Regulator's new Code of Practice. An actuarial review by Barnett Waddingham found the fund to be mostly compliant in relevant areas. A plan has been developed to address non-compliant points, outlining necessary actions and documents, with deadlines set for completion. Key documents requiring updates include the Governance Compliance Statement (deadline end of January 2026), a new Training Policy and Plan for the Pension Board and Committee (draft by end of calendar year), minor changes to the Pensions Administration Strategy, and a specific Business Continuity Plan for the Pension Fund. Amended or new documents will be presented to the Board for review and agreement. The Board's Business Plan and Risk Register will be updated to incorporate these changes.

Performance

James Grafton, Pension Administration Officer, presented the performance report for Quarter 2 (July-September 2025). Membership decreased slightly by 41. Service Level Agreement (SLA) performance remained strong at an average of 98.6%, with all cases above the 95% target. Completed cases dropped slightly. Help desk calls answered within four minutes improved to 72.1% by September, with an average wait time decreasing to 3 minutes 32 seconds. Member satisfaction, while fluctuating, saw a quarterly average increase to 86.4%. Online portal registrations grew, with 7,320 active accounts by September. Six new complaints were reported in September, with four resolved; LPPA remains above the target of one complaint per 1,000 members. Two IDRP cases were reported, and no breaches occurred. Overall, a definite improvement in service levels compared to the previous year was noted.

Board Training Plan

Jacqui Andress outlined the training plan for Board members, as required by the Pensions Regulator's Code of Practice, to ensure they possess the necessary knowledge and understanding to fulfil their roles. The plan includes provisions from various providers, including the actuary Barnett Waddingham and LPPA. Login codes for Barnett Waddingham's online training courses have been provided to all Board members. Board members are asked to complete the SIP Knowledge and Skills Framework, with completion status to be reported at each meeting. New joiners, Donford Vardon and Alison Mitchell, have also received login details. The completion status of training will be reviewed at the next meeting.

The next meeting is scheduled for 6 January 2026.