The Pensions Committee of Newham Council met on Thursday 05 February 2026 to discuss the Newham Pension Fund's Business Plan for 2025/26, receiving updates on investment strategy, funding, and the annual report. Key decisions included the approval of the Draft Funding Strategy Statement and the Draft Pension Fund Annual Report for 2024-25.

Business Plan Update

The Committee received an update on the Newham Pension Fund's Business Plan for 2025/26. This included information on the London Collective Investment Vehicle (LCIV), which is the designated asset pool manager for the Fund, with a deadline of March 2026 for full implementation. Updates were also provided on new government regulations and consultations, including the extension of Fair Deal protections and technical consultations on pooling and investment management. The Committee noted that the funding strategy statement would be circulated for consultation and added to the Committee's agenda. The annual report was deferred to the next meeting to allow for circulation to members, and members were advised to attend training for the annual accounts.

Draft Funding Strategy Statement (FSS) 2025

The Committee was asked to approve the Draft Funding Strategy Statement (FSS) for 2025, which had been prepared in conjunction with the Fund's Actuary, Barnett Waddingham, and in accordance with the LGPS Regulations 2013. The purpose of the FSS is to establish a clear and transparent fund-specific strategy for meeting employers' pension liabilities, ensuring the solvency and long-term cost efficiency of the Fund, and taking a prudent, long-term view of funding. The FSS was circulated to stakeholders for consultation and comments in December of the previous year.

Draft Pension Fund Annual Report 2024-25

The Committee was presented with the Draft Pension Fund Annual Report for 2024-25, which includes the Pension Fund Accounts for the same period. Officers had provided members with an overview of the draft report at a Quarterly Strategy Update Meeting in January 2026. It was proposed that any changes arising from the audit of the report would be delegated to the s.151 Officer in consultation with the Chair.

Investment Strategy Update

An update was provided on the Fund's investment strategy and its implementation. The Fund had achieved its highest-ever valuation in the last quarter, exceeding £2 billion, driven by strong equity markets despite ongoing volatility. However, active equity managers had slightly lagged the market. The next funding valuation was expected in the new year, with the subsequent one scheduled for March 2028. The annual pension increase of 3.8% was confirmed, based on September CPI, and actuarial assumptions had already incorporated such increases, with no adverse impacts on long-term funding expected. Members requested clearer guidance on proposed changes in lengthy reports and for all future Pension Committee and Quarterly Strategy Review (QSR) dates to be added to Council Members' calendars. The Committee noted the report, including the Barnett Waddingham report on the Fund's investment performance and funding update as at 30 September 2025.

Pensions Administration Update

The Committee received an update on the administration of the Newham Pension Fund. Discussions included upcoming legislative changes impacting the Local Government Pension Scheme (LGPS), such as gender pension gap reporting, death grant age and payment limits, and raising the minimum pension age from 55 to 57. Consultation was ongoing regarding allowing Councillors to rejoin the LGPS as members, with consideration given to the potential impact on Council budgets and individual Member benefits. The proposal for a dedicated LGPS senior officer and the appointment of an independent person to the Pensions Committee were also discussed, along with their implications for internal governance and constitutional adjustments. Emphasis was placed on the need for a training strategy for Board and Committee Members, with future compliance reviews and independent assessments expected.

In terms of administration performance, it remained above 95%, with a noted drop attributed to resource reallocation for valuation and annual benefit statements. Growth in registrations for Pension Point, the self-service member portal, was reported, with ongoing efforts to address compliance gaps following the 2024 code of practice update. Membership numbers were increasing overall, though active membership had temporarily dipped due to data lag in leaver processing during the transition to monthly employer reporting, which was expected to stabilise. Progress was being made in reducing historic outstanding employer cases, with several new employers admitted to the fund. The ongoing challenges with late employer retirement notifications were discussed, with an explanation that there was a trade-off between payroll accuracy and administrative timelines, and it was clarified that there were no penalties for late reporting. Artificial intelligence was raised as a potential area for implementation in pension administration, and a follow-up with LPP/LPPA on AI use in pension administration, along with any related risks, would be provided at a future meeting. The Committee noted the administration updates, performance data, and employer admission updates within the report.

Date of Next Meeting

The next meeting of the Pensions Committee was scheduled for 19 March 2026 at 6:30 pm in Newham Town Hall.