Tower Hamlets Pension Fund is set to align with UK investment goals following a recent Pension Board meeting where members reviewed and agreed to implement the government's response to the Local Government Pension Scheme (LGPS) 'Fit for the Future' consultation.

The board reviewed the government's response to the LGPS 'Fit for the Future' consultation, which outlines reforms to asset pooling, local investment, and governance. A key aspect of this alignment is the requirement for the fund to publish a local investment ambition by 31 March 2026.

The key points from the report included:

  • All LGPS funds must invest through authorised asset pools by 31 March 2026.
  • Pools must have a minimum scale of £50 billion, regulated structures and professional governance.
  • Funds are expected to publish a local investment ambition by 31 March 2026, aligning with regional economic growth and regeneration goals.

The board discussed the definition of 'local' investment, with Councillor David Stephen Thompson asking for clarification on whether it meant the UK or just Tower Hamlets. It was confirmed that local meant the UK.

The board agreed to the recommendations, including endorsing officers to prepare for compliance with the new asset pooling and investment requirements, and supporting the development of a local investment ambition framework by March 2026.

As part of the changes, all LGPS funds must invest through authorised asset pools by 31 March 2026, with a minimum scale of £50 billion, regulated structures, and professional governance. The Tower Hamlets Pension Fund will transition its assets to its designated pool.

Funds are expected to publish a local investment ambition by 31 March 2026, aligning with regional economic growth and regeneration goals. The board discussed the definition of 'local' investment, with Councillor David Stephen Thompson asking for clarification on whether it meant the UK or just Tower Hamlets. It was confirmed that local meant the UK.

The board agreed to the recommendations, including endorsing officers to prepare for compliance with the new asset pooling and investment requirements, and supporting the development of a local investment ambition framework by March 2026.