Newham Pension Fund is grappling with rising costs, prompting proposed policy changes to ensure its long-term financial health. The Newham Pensions Board convened on Tuesday 24 June 2025, to address these challenges, focusing on legislative updates, budget considerations, and revisions to the fund's admission policy.
A key area of concern is the proposed Pension Administration budget for 2025-26. LPPA has put forward a budget of £1.090 million, marking an 11.98% increase from the previous year. This rise is attributed to growing membership and a higher price per member, driven by inflationary pressures, service development, data quality enhancements, and compliance with evolving legislative requirements.
In response to these financial pressures, the board is considering changes to the London Borough of Newham Pension Fund Admission policy. These changes primarily target Transferee Admission Bodies (TABs), which are organisations assuming services or assets previously managed by a Scheme employer. The goal is to ensure only suitable employers join the fund while minimizing financial risks.
Proposed changes include a default pass-through arrangement for TABs under contract to schools or academies within Newham. This means that the contribution rate will be set equal to the rate payable by the letting authority when the admission commences. Alternative arrangements, such as bonds or guarantors, would require approval from the Section 151 officer.
The meeting also addressed legislative updates impacting the Local Government Pension Scheme (LGPS), including compliance with The Pensions Regulator's Code of Practice and addressing the McCloud Judgement, which refers to a 2018 Court of Appeal ruling that public service pension schemes discriminated against younger members when changes were made in 2014 and 2015. The board also discussed the implementation of a pensions dashboard, requiring public sector pension schemes to connect by 31 October 2025, and a consultation on amendment regulations for the LGPS.
Furthermore, a breach of law report was submitted to the Pension Regulator on 3 June 2025, highlighting the seriousness of the issues being addressed. The board also received a performance update from LPPA, noting that overall operational casework performance was 98.9% against overall Service Level Agreements (SLAs) for the quarter.