Newham Pension Fund Faces Compliance Gaps, Outlines Action Plan
A recent review of the Newham Pension Fund has identified several areas where compliance with The Pension Regulator's (TPR) General Code of Practice falls short. However, the fund has developed a comprehensive action plan to address these issues, with a commitment to regular internal reviews and the incorporation of future legislative updates.
The review, conducted by Barnett Waddingham LLP, assessed 53 modules across five key areas: The Governing Body, Funding and Investment, Administration, Communication and Disclosure, and Reporting to TPR. Of the modules assessed, 60.4% were found to be compliant, with 16.9% partially compliant and 5.7% non-compliant. A further 17% were deemed not applicable to public sector pension schemes.
Governing Body Improvements
Specific areas flagged for improvement within the governing body include the appointment and role of the Chair, meetings and decision-making processes, and the governance of knowledge and understanding. To address these, the fund is amending the Governance Compliance Statement to clarify the roles of the Chairs for both the Pensions Board and Pensions Committee, and to detail how arrangements for meetings and decision-making processes are managed. Furthermore, a Training Policy for Pension Board and Pension Committee members
is being created to ensure they possess the appropriate knowledge and skills. Actions related to the Chair's role will be updated after the May 2026 election.
While the fund has a risk register and internal controls in place, the review highlighted the need for a more comprehensive scheme continuity plan and clearer policies regarding cyber controls. The action plan includes creating a dedicated Business Continuity Plan for pensions, with a target completion date of September 2026. For cyber controls, details and processes for ensuring cyber security will be integrated into the Governance Compliance Statement and Risk Registers by June 2026. The terms of reference for the Board will also be updated by September 2026 to cover expectations for Board members who are not employees of the Council. The Pensions Manager and Pensions Projects and Contracts Manager are responsible for these implementations.
Administration and Communication Enhancements
In administration, the fund was found to be partially compliant in areas related to receiving, monitoring, and resolving overdue contributions, with a lack of documented procedures identified. Similarly, in communication and disclosure, while the fund has a communication policy and provides annual benefit statements, areas such as retirement risk warnings and the notification of rights for cash transfer sums or contribution refunds require further attention.
Reporting to TPR and Future Planning
Reporting to TPR also presented challenges, with the fund identified as non-compliant in aspects of registrable information and scheme returns, and partially compliant in whistleblowing procedures. The action plan, detailed in Appendix 2 of the General Code of Practice Compliance Review, indicates a need to update governance statements and policies to address these gaps. The timeline for rectifying these issues generally ranges from June 2026 to September 2026.
To ensure future legislative updates are effectively incorporated, the General Code of Practice Review document will seek to include requirements from the Fit for the Future
review, which aims to strengthen the governance of the Local Government Pension Scheme (LGPS). Officers will conduct regular internal reviews of the Fund's performance against the Code, with actions reported back to the Local Pensions Board. This proactive approach, coupled with the detailed action plan, positions the fund to maintain compliance and adapt to evolving regulations.
Despite these identified areas for improvement, the report notes that the fund is in a positive position
overall. An updated action plan has been presented to address the identified gaps, demonstrating a commitment to continuous improvement.