Newham Pension Fund has approved its budget for the upcoming financial year with a modest increase of 1.58%. The Pensions Committee met on Thursday, July 16, 2026, to sign off on the £1.107 million budget for pension administration.

The fund's asset valuation, excluding cash, stood at £2.058 billion as of March 2026. The £1.107 million administration budget represents a cost associated with managing these substantial assets and overseeing the pension fund's operations.

The administration services are managed by Lancashire County Council through the Local Pension Partnership Administration (LPPA) service. This budget covers essential administrative functions, including updates on consultations and law changes impacting administration, employer admissions, and updates from the Local Pension Board. The 2026/27 budget of £1.107 million marks a 1.58% increase from the previous year's budget of £1.090 million.

The 1.58% increase is attributed to the budget being set by Lancashire County Council on a per-member rate. This rise is noted as being below inflation and reflects returns achieved within the LPPA's Efficiency & Service Improvement Programme (ESIP), particularly in semi-automated retirements and monthly return improvements.

This new budget is also associated with significant anticipated changes in pension administration services and processes, driven by legislative developments. Key among these is the impact of the Pension Scheme Act 2026, which mandates new statutory requirements for appointing a Senior LGPS Officer and an Independent Person, alongside triennial governance reviews and the development of a training strategy for elected members, board members, and officers.

Furthermore, legislative changes stemming from consultations on Access and Fairness and Access and Protections will lead to the equalization of survivor benefits, modifications to death grant rules, and the automatic inclusion of additional unpaid maternity, adoption, and shared parental leave within pensionable service. The budget also accounts for the planned increase in the normal minimum pension age to 57 from 55, effective April 2028, and the reinstatement of LGPS access for councillors and mayors in England. Reforms to New Fair Deal are also set to provide enhanced protection for outsourced staff.

A bar chart illustrating the 3-month relative performance of various investment funds against their benchmarks, as of March 31, 2026.
A bar chart illustrating the 3-month relative performance of various investment funds against their benchmarks, as of March 31, 2026.

For more details on the committee's proceedings and reports, refer to the Public reports pack. The full meeting documentation can be found in the MDocPackPublic document.