Members are reminded to consider the categories of interest, identified in the Code of Conduct for Members to determine: whether they have an interest in any agenda item and any action they should take. For further details, see the attached note from the Monitoring Officer.

Members are also reminded to declare the nature of the interest at the earliest opportunity and the agenda item it relates to. Please note that ultimately it is the Members’ responsibility to identify any interests and also update their register of interest form as required by the Code.

If in doubt as to the nature of an interest, you are advised to seek advice prior the meeting by contacting the Monitoring Officer or Democratic Services.

There were no declarations of Pecuniary Interest declared by the member of the Committee.

To confirm as a correct record the unrestricted minutes of the meeting of the Committee held on 11^th December 2023.

The unrestricted minutes of 11^th December 2023 were AGREED to be an accurate record of the meeting and were APPROVED by the Committee.

No Petitions relating to the matters for which the Pensions Committee is responsible had been received by the Officer.

Mr John Jones, Independent Chair of the Pension Board presented his report on behalf of the Pension Board. He informed the Committee the Board had met on the 11^th March 2024.

Mr Jones highlighted the reports the Board had reviewed and stated the Board had received an insightful presentation from Hymans Robertson on The Pension Regulators (TPR’s) Code of Practice and the changes being made to it. He said LGPS’s were expected to implement the changes by the 27^th March 2024 however the TRP envisaged it would take pension schemes up to 12 months to be fully compliant. Mr Jones recommended the Committee also receive the same presentation at one of its meetings.

Mr Jones also informed Committee members that the Board would be holding an extraordinary meeting in April 2024, to review the Pension Fund’s risk register as an up-to-date version had not been available at the last Pensions Board meeting.

·       Members of the Committee had no questions for Mr Jones.

The Chair thanked Mr Jones for attending the meeting and presenting his report.

Mr Paul Audu, Interim Head of Pensions and Treasury stated that the report provided an update on the consultation on the government had undertaken called “Local Government Pension Scheme (England and Wales) Next Steps on Investments”. He said the Government’s response was attached to the report. He informed members the Government was looking to press ahead with its plans to pool investments and there was a likelihood of LGPS pools to reduce from 8 to about 5 pools.

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

·       Mr Audu confirmed there was a plan to deal with investments outside of the pool and said this would be reported back to the Committee and Board. He said the plan was to include the other investments in the LCIV where possible with an explanation as to why some of the investments were outside of the pool.

·       Mr Audu said that Pension Scheme was open to all employees and whilst staff were auto-enrolled, some members choose to opt-out of the scheme for various reasons.

The Pensions Committee RESOLVED to:

1.    Note the contents of the report; and

2.    Note the Government’s response to the consultation.

Mr Paul Audu, Interim Head of Pensions and Treasury presented the Pensions Administration and LGPS Quarterly Update report. He said the report provided information on the administration and performance of the scheme and an update on key developments in the LGPS for the quarter to December 2023.

Mr Audu referred members to the table at paragraph 3.6 which showed performance against CIPFA targets. He said the performance had varied especially with a heavy workload. Mr Audu also referred to the legislative update set out at paragraph 3.13 onwards.

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

·       Members of the Committee had no questions for Mr Audu.

The Pensions Committee RESOLVED to:

1.    Note and comment on the contents of the report and appendix;

2.    Note the insourcing of Tower Hamlets Homes; and

3.    Note academy conversions in the pipeline.

Mr Paul Audu, Interim Head of Pensions and Treasury stated that the Pensions Committee members alongside Board members would be provided training to maintain their knowledge and understanding of pensions, in line with the legislative requirements. He said the training plan was interlinked with the Committee’s work plan with a structured approach to the training which would follow the CIPFA framework.

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

·       Members concurred training and development were crucial for members to maintain knowledge and skills relating to Pensions work and looked forward to future training opportunities.

The Pensions Committee RESOLVED to:

1.    Note the forthcoming training events.

Mr Paul Audu, Interim Head of Pensions and Treasury said the work plan set out the reports coming to the Committee for the March 2024 meeting. He said a new workplan for municipal year 2024/25 would be presented to the Committee at its next scheduled meeting.

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

·       Mr Audu confirmed that Fund managers would be invited to present at future meetings of the Committee.

·       Mr Audu said he would enquire if Committee members could be invited to attend meetings with Fund Managers at their place of business rather than attend a meeting in Tower Hamlets, so members could gain a better understanding of their work environment and how they chose investments.

The Pensions Committee RESOLVED to:

1.    Note the work programme for the Committee.

There was no other business to be discussed.

In view of the contents of the remaining items on the agenda the Committee is

recommended to adopt the following motion: “That, under the provisions of Section100A of the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985, the press and public be excluded from the remainder of the meeting for the consideration of the Section Two business on the grounds that it contains information defined as Exempt in Part 1 of Schedule 12A to the Local Government Act,1972.”

EXEMPT SECTION (Pink Papers)

The Exempt/Confidential (pink) papers for consideration at the meeting will contain information, which is commercially, legally or personally sensitive and should not be divulged to third parties. If you do not wish to retain these papers after the meeting, please hand them to the Democratic Services Officer present or dispose of them in the confidential bins.

The Chair MOVED and it was

RESOLVED

That, under the provisions of Section 100A of the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985, the press and public be excluded from the remainder of the meeting for the consideration of the Section Two business on the grounds that it contains information defined as Exempt in Part 1 of Schedule 12A to the Local Government Act 1972.

To confirm as a correct record the restricted minutes of the meeting of the Committee held on 11^th December 2023.

The restricted minutes of the meeting of 11^th December 2023 were agreed to be an accurate record of the meeting and were approved by the Committee.

Mr Paul Audu, Interim Head of Pensions and Treasury stated that the attached report at appendix 1, was the revised Investment Business Plan for 2023/24. Mr Tony English from Mercer added the Investment Business Plan had been updated to reflect the agreed changes to investments.

The Pensions Committee RESOLVED to:

1.    Note the content of the report; and

2.    Give consideration of the attached updated Investment Plan 2023/24 and agree the Business Plan.

Mr Paul Audu, Interim Head of Pensions and Treasury stated that the report informed members of the performance of the Pension Fund investments and its investment managers for the quarter ending December 2023.

The Pensions Committee RESOLVED to:

1.    Note the content of the report;

2.    Note the attached monitoring report – Quarter to 31^st December 2023 from Mercer (Appendix 1);

3.    Note the original Mercer paper titled “Asset Allocation Considerations” (Appendix 2);

4.    Note the update from the Independent Adviser, Colin Robertson for quarter to 31^st December 2023 (Appendix 3);

5.    Note the verbal update on the status of the Pension Fund Investment rebalancing given by Mercer at the meeting; and

6.    Read the report in conjunction with the linked report titled “Portfolio Rebalancing – Index Linked Gilts.”

The Committee meeting was held during the holy month of Ramadan. The Committee adjourned at 18:23 and re-commenced at 18:55 to allow for the breaking of the fast.

Mr Paul Audu, Interim Head of Pensions and Treasury presented the report which provided an update on the stewardship activities carried out by the Tower Hamlets Pensions Fund’s investment managers and on its behalf the Local Authority Pension Forum (LAPFF) in the quarter ending December 2023.

The Pensions Committee RESOLVED to:

1.    Note the content of the report and appendices.

Mr Paul Audu, Interim Head of Pensions and Treasury stated the report provided an update on the revised Investment Strategy Statement (ISS).

The Pensions Committee RESOLVED to:

1.    Note the content of the report; and

2.    Give consideration of the attached updated Investment Plan 2023/24 and agree the Business Plan.

Mr Paul Audu, Interim Head of Pensions and Treasury stated the report provided an update on the rebalancing of the Pension Fund investment portfolio, as agreed by the Committee at its 11^th December 2023 meeting.

The Pensions Committee RESOLVED to:

1.    Note the content of the report;

2.    Note the verbal update provided by Mercer on the Pension Fund Investment re-balancing; and

3.    Note the report should be read in conjunction with the report titled “Quarterly Investment Review – December 2023.

Mr Paul Audu, Interim Head of Pensions and Treasury introduced the report and stated that the report provided an update on the changes to the Pension Fund Risk Register during the quarter ending 31^st December 2023.

The Pensions Committee RESOLVED to:

1.    Note the detailed risk register appended to the report (Appendix 1).