Mr Barry Dodds, from Hymans Robertson said the attached Valuation Plan set out the timeline for the 2025 actuarial valuation. He asked members if they had any further questions in relation to the actuarial valuation.

In response to comments and questions from members the following was noted:

• Members of the Committee had no further questions for Mr Dodds, in relation to this report.

The Pensions Committee RESOLVED to:

1. Note the content of this report.
2. Note that the estimated funding level of the Pension Fund was 163% at 30 June 2024.
3. Note that Pension Fund returns resulting from the Committee’s investment decisions impact the estimated funding levels.
4. Note that the Fund Actuary, Hymans will be attending this meeting to discuss their approach to the upcoming 2025 actuarial valuation and provide training. The training material is at Appendix 1.
5. Note the 2025 actuarial valuation planning presentation appended to this report (Appendix 2).

Mr Barry Dodds, from Hymans Robertson gave a presentation to the Board, which highlighted how the Actuarial Valuation is undertaken. He explained how the fund works, how the strategy is set, the current funding status of the LGPS Fund and the change in environment such as high inflation and investment outlook affect the performance of the fund. Mr Dodds outlined the main funding risks and valuation considerations for the 2025 Triannual valuation.

In response to comments and questions from members the following was noted:

o   ACTION: Referring to the heatmap, the Corporate Director for Resources Ms Lorraine asked if details could be provided from Club Vita of where Tower Hamlets members of the LGPS reside as the wider UK figures may not be representative of the makeup of the council’s workforce and noted that much of the valuation would focus on life expectancy and longevity.

·       Referring to the options slide and retaining the surplus, Mr Thompson asked how the investment strategy would change to deal with volatility. He asked if the option was to invest in more liquid assets. Mr Dodds confirmed it was.

·       In response to how government policy, impacts on projected assumptions made, Mr Dodds said modelling was used to consider these factors. For example, if a considerable amount of redundancies were projected this would impact the profile of the LGPS membership.

The Pensions Board RESOLVED to NOTE and AGREE the recommendations being made to the Pensions Committee for its meeting of 30^th September that:

The Pensions Committee is recommended to:

1.    Note the content of this report.

2.    Note that the estimated funding level of the pension fund was 163% at 30 June 2024.

3.    Note that Pension Fund returns resulting from the Committee’s investment decisions impact the estimated funding levels.

4.    Note that the Fund Actuary, Hymans will be attending this meeting to discuss their approach to the upcoming 2025 actuarial valuation and provide training. The training material is at Appendix 1.

5.    Note the 2025 actuarial valuation planning presentation appended to this report (Appendix 2).