Pensions Committee - Monday 9 March 2026, 4:00pm - Tower Hamlets Council webcasts

Pensions Committee
Monday, 9th March 2026 at 4:00pm 

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An agenda has not been published for this meeting.

Good afternoon everyone and welcome to the pension committee meeting. My name is counsellor anomian and I'm the chair of the committee
Please note that following meeting procedures this meeting being hold in person community member and keep
Automation person in the meeting room only be the committee member person the meeting room will be vote
There their person may be also
Attending remotely committee member and others who have chosen to attend remotely have been advised by the committee officer
that should
Technology difficulty provided and they are full situation in the meeting
To me was it on the able to the field in the necessary?
I will be a reminder member to the meeting to only speak to my
direction and speak to clearly into the
intercom
To ensure that the contribution can be properly recorded.
Everybody make sure that mobile phone is switched off and silent.
The -the recursion part of the agenda will be take in 1 -9 .5, 9 .2 and 9 .6 first before
When in item
Can I also ask the what it is doing from everyone that will be?
Meteors in 555 p .m. To look for the break the first the first open
555
58 p .m. The break will be 45 minute everyone must be back on
625 p .m.
To contribute with the meeting
I will ask the committee member person to introduce themselves please can you do so
Good afternoon everyone my name is Councillor Ayman from Bethnal Green West
Thank you very much nothing to declare no DPA
Afternoon chair, afternoon committee, Councillor Saeed Ahmed, nothing to declare
I'm Richard Ennis, I'm the interim corporate director for resources and the section 151
officer.
Having started last week, nothing to declare.
Good afternoon, Asan Khan, corporate head of financial and technical accounting.
John Jones, I'm the chair of the local pension board.
Mr Ennis, if you could switch off, thank you.
John, can you reintroduce yourself?
Yeah, John Jones.
I'm the independent chair of the local pension board and nothing to declare.
I'm Kieran Henry from Hyman & Robertson, support to fund actuary Barry Dodds.
Hi, Abdurazah Qasim, director of finance and procurement and audit.
I'm Sandeep Chandarana from Mercer.
I'm an investment consultant.
I'm Steve Turner investment consultant for Mercer Colin Robertson independent advisor
Council Peter Gold's Island Gardens Ward, nothing to declare although there is an item later on that I refer in East End Homes and I've got at least a lot of East End Homes property in my ward but I have no fiduciary connexion with them.
We will now go to the people online to introduce themselves, please.
Starting with Councillor Kabbir Hussein.
Hello, Councillor Kabbir Hussein, NODPI.
Carol.
I'm the legal advisor for the committee.
Barry.
Afternoon, everybody. I'm Barry Dodds. I work for Highman's Robertson, who is the fund
actuary to the fund.
Sorry, before we go to the apologies, I think we've missed out.
Paul Oudu, perhaps he can introduce himself too.
Good afternoon, Paul Oudu, interim head
of pension and treasury, thank you.
And in terms of apologies, we've had apologies
from Kahinde Akintunde, the co -opted member
on the committee.
Before we go to the item on the agenda,
There a question few report on this agenda some are the
Noting who their next sector discussion there. There will be
to
study to
question from the member for the
Noting report so we have time for the report which is
question long to item
The number of the undisputed mean for the previous meeting page number nine point eight in two minute I
I can I can invite member to approve the national minute for the December 2025
Okay petition for 4 .5 million petition we have
Any petition yeah, we've got I'm Carrie Anne from unison here
and she wishes to address the committee.
So Kerry -Ann, if you could take the table.
Thank you, Chair, and good evening, committee members.
Thank you for the opportunity to address this committee again.
As you know, I'm Kerri -Ann and I'm the Branch Secretary of Tower Hamlets, Unison,
and I have been paying into the LGPS for about 25 years now.
I'm joined by Sybil Kok, who is Chair of the Tower Hamlets Palestine Solidarity Campaign,
and we are also accompanied tonight by other scheme members and residents.
As you may recall, Unison, in partnership with the PSC and also the Trades Council,
are together the Tower Hamlets Coalition for Ethical Investment.
And we are before you again tonight to continue our representations
on the important subject of pension divestment.
Firstly, we welcome the motion passed at full council in 2025,
which committed the council to one, divest its pension scheme
from companies linked to the occupation of Palestine
and from companies with ties to the arms trade,
and two, undertake a full audit to identify any investments in the arms trade.
As you will know, since then the landscape has evolved somewhat, with the Government
setting a deadline of 31 March for administrating authorities to pool 100 % of their assets in
the SIV.
It is encouraging to learn that the SIV is currently creating a responsible investment
matrix that will allow pension funds to choose investments that exclude companies contributing
to human rights abuses and environmental destruction.
But the lack of transparency and information in the public domain about the new investment
matrix is concerning.
We understand that there will be three pillars of investment for authorities to select from,
each with increasing levels of restrictions, exclusions based on ethical, social and governance
criteria, with Pillar 3 having the strongest ESG elements.
However, we also understand that Pillar 3 does not include companies on the AFSC investigate
divestment list or the Who Profits corporate database.
This is despite the fact that the CIV has itself used these databases as sources since
2021 to assess exposure to companies involved in violations of international law.
We also remain in the dark about the audit of the pension investments that the Council
committed to undertake.
Therefore, we are here tonight to call on the pension committee to take the three following
steps.
One, use its influence and leverage to ensure that the server offers an investment option
that includes the above mentioned database and lists.
Two, make public the outcome of its pension fund audit.
Three, make a public statement confirming its commitment
to divest from complicit companies.
Because at the moment, all there is are the minutes
of the council meeting where the motion was debated.
So in conclusion, Tower Hamlets Council has made
some really positive first steps in the right direction.
So let's keep going.
So we all get to the point where we can together proudly say
that Tower Hamlets has divested for Palestine and the planet.
Thank you.
We're happy to take any questions if you have any.
Thank you, Chair, and thanks to the petitioners,
Kerry and Sivu.
I think what you bring as a question is very important.
Just wanted to ask a few questions to start with.
You have seen our full council motion and what you bring to the table today is important,
with something of sentiment and especially with the Aspire members.
I just wanted to see, you have listed some of the asks today which are not to be thrown.
I think it's very important that you want to have some transparency around this area
when it comes to database, the public outcome and the public segment.
There are very important elements, but have you had any updates in the public forum following
our motion and where we are when it comes to divestment, particularly for those points
that you picked on?
Were you given any information or are you completely in the dark?
So in relation to the audit, as far as I understand, we don't have any details of it, do we?
And we would very much like to know that.
And I think we have written to a number of councillors who have signed the the pledge for Palestine
And they're publicly upfront and having done that
but in terms of other bits of feedback to do with
We've had we have no idea about how this committee engages with the serve on these really important questions of of investment matrix
So we're here today to press this. I don't know whether simple you might want to say
That's that's right
We've had we have a very large number of councillors townless council small parties now
Who have signed the pledge for Palestine and a number have also written to the sieve
to ask for this support for pillar 3 which is what Kerry's been talking about, but in terms of
Public statements. We know nothing about the audit and also we don't really have a public statement from the council
about, or from the bench committee or the council, about the decision that was taken
at full council over a year ago.
And it will be very much welcomed, given that Tamlitz is one of, I think, nearly 40 councils
now who have made a commitment to divest for Palestine and the planet.
I hope that answers your question.
Thank you.
Sorry, Jay.
Farah, is it all right if we hear from the officers on the update on where we are when
it comes to divestment, or should that come as a different forum?
Can we – can we – for the benefit of the petitioners, if they can hear something on
an update when it comes to divestment for Palestine?
Paul, are you okay too, with applause?
Thank you.
Thank you for the comment. The local authority as it stands is currently working, i .e. the
pension fund is in discussions with the London CRIV and together with the other partner funds
across London. We are continuing to engage with the London Save to discuss
their approach to all things ESG. It is very much a work in
progress because the new regulations, as you know, will come into
force, you know, from April.
And as things stand, the regulations
are waiting in roll accent.
So that will obviously drive the direction for ESG.
But pretty much, it's going to be a collaborative process.
So it's not going to be different authorities
or different pension funds doing their own thing.
I think in line with the regulations, you know, it will be a collaborative approach.
And so there will be plenty of opportunity to start, you know, if you like, at grassroots
articulating the committee's, you know, stance on ESG matters.
So obviously there will be training and so forth.
So I think the starting point will be for the committee
in the new year to meet to obviously discuss,
you know, its beliefs, so investment beliefs.
So that's the starting point.
And they'll be guided by the, you know, advisors.
But obviously from the first of April, as you know,
the primary advice will come from the London Sieve itself.
So in that new environment,
so the approach to all matters,
you know, ESG and responsible investing
will be coordinated, you know, by the London Sieve.
So there will be plenty of opportunity
to obviously start that process of influencing what happens there, you know, from grassroots.
So the views of the unions will be, you know, taken into account when it comes to the
the fund doing what they should do. Thank you. Thank you. Thank you.
Yeah, thanks for coming. Thank you
Thank you
Agenda number five submission the revision form the pension board supplementary agenda page number five five minute
Agenda number three supplementary agenda. Yes
Can can you invite john johnson to report their report, please?
Thank you, thank you chair just want to
Highlight a few issues that were raised in the board meeting which was held last month Monday
And there is a there is a report on the supplementary agenda
Which you can which I'll just take you through very briefly
I think the first point to say is the reports that we looked at that are basically the same as you have today
and I just wanted to just cover a few points before we
reach those items on the agenda.
Paragraph three, in my note, deals with the,
paragraph two, sorry, is the improvement
in the Pensions Administration team.
I think if you recall last time,
we noticed that they turned a corner
in terms of performance, and we can see that's continued
on this occasion, and if that momentum can be maintained,
that would be very useful and address
what has been a big issue historically.
So I think the staff should be congratulated
on that change.
Second point, in power of four on the risk register, the risk register is an important
document in the overall governance of the fund and is something that board and committee
should review at each meeting.
There is still some work to do on this, I think has emerged in the discussion last Monday,
and I think that what's important is that mitigations and a responsible officer are
Included against each risk so that it can be monitored and more and more effectively as than it is at present
I've highlighted some issues in para six on knowledge and skills development because under the new arrangements that are coming in these have to be
Recorded for the committee as well as the board so it's important that this is coordinated
Centrally and can demonstrate to any external reviewer that knowledge and skills works plus works being carried out
Finally
There's an item on the part two of the agenda on the governance report
and I would like to raise some issues in connexion with that item when we reach that on the
On that part of the agenda. So other than that, I'm happy to take any questions or
Also pick up any issues as you go through the agenda today. Thank you. There's going to have any question
Thank you.
Can I report and I'm going to note it.
Thank you, John Johnson.
Next item, item number five, report of the controversial pension admission report, September
2025, page number 19 to 25 minute.
I will ask the report to being the will be go to question.
Do committee member have any question or
strokes I
Ask the committee hope they over there
recommended noted can but
noted the agenda recommended page number
1919 page number 19 agenda
Okay, five point two scheme against middle of the community report page number 31 to 36 10 minutes
I'll ask the report to being read and will be fair to say to question
Duke do member committee member have any question or committee have
Which to ask
Can I ask the committee to
Committed no, I don't know what can member please note the agenda
Recommendation page number 31
Two agenda, yes.
Five point pre -pension fund restriction,
risk restriction, December 2020,
your page number 37 to 50, 10 minute.
Can I invite Paul Wood to introduce your report, please?
Five point three.
Thank you, Chair.
I think in the interest of time, I'm happy for this report to be taken as read and happy to take any questions
Thank you
Thank you those committee have any question or comment to wish to speak
Thank you a quick question out of the recommendations there's one that says to
the authority director of resources to implement the redesign of risk register.
So in terms of the risk register looking at 3 .7, can I just get some clarification around
the strategic risk, regulatory compliance risk and delegation risk of these different
factors, just on a high level if that's okay?
Thank you, chair.
The reason for redesigning the risk register is, you know, to ensure that, you know, it's
aligned with the incoming regulation.
Members of this committee will be aware that the current, soon to be the previous risk
register, was based on the 2016 regulations.
and so that is has now been phased out so the purpose of this report is
basically to inform this committee on how the landscape the LGPS landscape has
changed and with it the new risks that the committee is obviously going to be
dealing with going forward.
For example, key amongst these risks are investments we heard from the protesters earlier on things
like ESG, because once the investments are transferred across to the pool, then certain
decisions will be taken at pool level rather than at committee level.
say the
nature of the role of the
Committee will obviously change from you know
Making decision on certain things to just monitoring so at a very high level the reason for
Redesigning the risk register is to make sure that you know this committee
You know is brought up to date
across
at the board in terms of how the environment has changed.
Thank you, Jay. Oh, sorry.
Yes.
Right. On the risks register, just a few comments.
I made these comments before.
One is that Paul's right, you have to make some changes because of the future.
However, this is very, very detailed.
Normally, risk registers are much more general.
If you put too many details down, then you're bound to miss something out, so they tend
to be broad so that it covers most contingencies.
Secondly, there's a few bits missing from it, which were in before, in particular longevity,
reference to liabilities, inflation and so forth, so they need to be added back in.
And it's quite hard to see the wood for the trees because it is so detailed, in my view.
So I think a quite a lot of work does need done on this and I was going to work with
Paul before on trying to bring it back, perhaps a bit more like it was before in terms of
the style, but putting in all the new factors that Paul is referring to, which is definitely
required.
Thank you, Chair.
Just to quickly pick up on one of the points Colleen has just raised.
Things like inflation, it's no longer necessary to be that granular for the simple reason
that the purchase, sale and decision to hold investment, all that transfers to the pool.
And tactical decisions that committee are able to take right now and previously, that
will no longer be possible.
Say, for example, if a committee had concerns
about the world out there, et cetera, et cetera,
it will no longer be in the committee's gift
to do something about that, because those
tactical decisions will be moving across to the pool.
I'm not sending this too far just to make one or two quick comments. The committee remains
responsible for the investment strategy of the fund, not tactical, but it's never really
done very much tactical, if any, decision making before, so it's just strategy as before.
But the strategy decisions, and it's the nine buckets which the committee is perhaps fulfilling
with, quoted equities, bonds, credits and so forth. So there's nine buckets which you
will be continuing to choose how much goes into each bucket.
And the decision as to how much goes into each bucket
does depend on inflation in terms of wanting
to protect yourself against inflation.
So you'd want to have exposure to a number of buckets
which are defensive in an inflation sense.
So it is an important characteristic
of your decision making for these nine buckets.
So Paul's right, it's not tactical,
but the strategic side does have an inflation aspect too.
And you do have still retain responsibility
for these nine buckets worth of strategy.
So it's not tactical, but it's strategic,
but it still involves things like inflation.
Thank you, Chair.
I'd like to refer to the issue which is on number six
on our agenda, which is note the pension schemes bill
that currently going through the legislative process.
In particular, I've seen a briefing note
sent to parliamentarians regarding
clause 40 of the bill, which could
be the possibility of introducing something quite
unknown in pensions, which would be to give the Secretary
of State something called the power of mandation, which
would mean the Secretary of State
would have the power to direct funds in a certain direction
and to certain ways which would send probably something more than a coach and
horses through any pension scheme absolutely anywhere. Have our officials here any idea on this or how this is going or what is the background to it?
That's correct. They do have that right. They have the right to take over the running of the pension fund in extreme.
and that's been debated in the press and so forth and they reassure everybody that will never happen
but in theory at least they can do that but the bill hasn't been passed yet nothing has actually
been passed so and draught stages if it were to go through unchanged and that would be the case
I think that's right Steve isn't it? Correct, I'm understanding as well. I mean the implication is
the
The further you are away from the fit for the future guidance the more risk you are at
with the government stepping in
Thank you chair, okay, it's really interesting conversation in terms of I'm gonna come back to the risk register
With the lens, I know it is a different committee, with the audit committee when it comes to
the internal audit, it comes to a point where it needs to go to a noting paper, needs to
go to MAB.
I think I will request that we add an additional process here when it comes to the risk register
for our pensions.
I think there needs to be a noting paper going to MAB at some point because I think the executive
needs to be aware, and especially when the risks become significant and it's too late
for the committee to do anything about it, I think we should give MAB an opportunity
well in advance to give them a site of where our risk registers are sitting.
So I request that we have an opportunity within this process to add in reporting to MAB for
the executive.
Thank you, Chair.
I think one comment to make there, and before I make that, if I can just pick up on Councillor
Gould's comment earlier.
The issue of mandate, the Secretary of State did concede that the clause as originally
attended was not, you know, intended as such, and as a result, that has been, you know,
dropped.
So in other words, the, the Mandation on Investment side, because I think it was something that,
you know, was discussed, the opposition party picked that up and that was dropped in, in,
in the autumn of last year.
So the, the residual powers that are left is the power of Mandation, which is simply
where a fund is deemed to be non -compliant for certain things.
But the powers of direct investment, that itself has been dropped.
Just a point of correction.
Turning to the question on risk register about sending or taking a paper to MAB,
I'd like to draw the committee's attention to a new requirement
to have a policy on conflict of interest and that is to ensure that the interest of the
authority as a shareholder
don't conflict with the
interest of the pension fund as a client of the pool say
Again that in itself is a risk which is reflected in a risk register. So those two
Interests should be in a shareholder as well as being a client must be
monitored and
managed by the committee to thank you chair
Can member please note that again
I'm sorry to dispute all that has been said by mr.
Torsten Bell, the minister, is that the government wouldn't
think of taking these actions.
That's not dropping it.
This clause is still sitting there
and will still be going before parliament.
And it is still as written.
And it's one thing for Mr. Torsten Bell
to say the current government might not
deal with this legislation.
But I can think of one or two other people floating around
on the fringes of politics on this country who
We would love to get their hands on pension funds and do things.
This clause is sitting there.
All we have is a minister saying, oh, no, we wouldn't dream of doing it.
So why is it there? Because they're going to debate it.
Thank you, Peter.
Can member please note that agenda, the recommendation of the page number 51 agenda.
I
Do number six training event, can I invite Paul to present your report, please?
Thank you chair I
I would I'm happy to take any questions on training in the interest of time. Okay, there's nothing
There is no report on the training.
Five point for LGP polling update, page number 51 to 10615.
Can I invite Paul Wood into this report, please?
Thank you, Chair.
I'm happy for this report to be taken as read and
Happy to take any questions Jay. Thank you
Those committee have any question
Can I ask the committee to go noted
One question, yeah
Paul, maybe you could just help me understand this very quickly.
When we say fit for the future and part of the recommendations is to note the new, the
local investment reconfiguration, the discussion that we've had in this committee when it comes
to our investment where we want the investment to go more towards our social housing and
for investments to be more within Tower Hamlets, can you just give us a highlight of where
we see it in part of this pooling?
The 2026 reforms represent the most significant structural change to the LGPS since 2014.
and what they do with taking together they actually alter the governance
arrangement the investment implementation and regulatory oversight
and these changes materially affect obviously the funds risk profile and
therefore require you know the redesign of the register as we discussed earlier
Now, taking it towards the investment side of things, what the new regulations require
is the delegation of the investment implementation to London CIV, so which automatically introduces
that statutory compliance and then the shared accountability between the fund and the pool.
So things like local investment will fall between them in that
The fund will articulate its ambition and his vision for local investment
But there's a requirement to work collaboratively with the pool and then together with the other
Pair groups and the
the original mayor as well.
So in our case, the London mayor.
So behind the scenes, so the London sea
will be talking to the London wide sort of body
to identify opportunities and so on.
And just to broaden things a little bit,
as you know, since September last year,
Buckinghamshire has also now joined the London CIV,
so which means that the geography
that collectively we're looking at
extends beyond London proper
and takes in Buckinghamshire as well.
So as things stand, yes,
the plan is for that vision to be developed at grassroots,
but then to be discussed with the London SEIF
and then as a group have a common vision
as to how that local investment can best be achieved.
And then there's a further requirement
to report all of that annually in the annual report.
So whereby the London thief will do the research, identify opportunities, but then the responsibility to report locally would be, you know, on the committee to set out on an annual basis exactly what they are doing with respect to local investment.
The journey started by the definition of local investment being the UK and then over time
that was, you know, I feel like redefined as broadly, you know, local, local as to the region
where, you know, the fund is operating in. So in our case it's London and of course taking in
Thank you.
Thank you.
Can member please the agenda recommendation page number 51, okay.
Item number six, training event.
Can I invite Paul to present your report please?
Item number six.
Thank you, Chair.
I'm happy to take any questions on training
Can member ever any question
Training is wonderful, but if members are nominated to be members of this committee
Which is actually one of the most important committees on this council because we do real hard work
They ought to be either turn up or if they can't turn up apologise
Agreed
Thank you Peter anybody knows what councillor
Item number seven pension committee work plan page number one zero seven two one one six
Can I ask member to note that pension committee work plan?
Are there any subjection member who wish to make?
No?
The pension committee recommendation were amended to not to work plan for the committee.
Item number eight any other business to
Minute
Item number nine exclusive press and public mind
Present public get the committee member to second the motion
In
View of the
Remindation item on the agenda the committee is recommendation to drop the following motion that under the
provision of the second
100 a and the local government action 1972
amended by the local government access information Act 1985 the
present public and the exclusive from the
recommendation for the meeting for the consideration of the section to business and the
ground that the
consideration information different example part 1 and section 12 a the local government action
1972
Thank you.