PART E: Committees and Joint Arrangements
Chapter 26: Pensions Committee
Section 1: Introduction
The Pensions Committee undertakes required responsibilities in relation to the Local Government Pensions Scheme.
Section 2: Terms of Reference
Summary Description
To exercise the functions delegated to the Committee by the Council as Administrating Authority of the Local Government Pension Scheme (“LGPS”), including responsibility for the strategic oversight of the governance, administration, funding and investment of the Pension Fund, in accordance with the LGPS Regulations 2013, the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026, other applicable legislation and statutory guidance issued by the Secretary of State.
Membership
Voting Membership:
- 7 Councillors
Non-Voting Membership:
- Admitted Bodies Representative
- Trade Union Representative
The Committee shall also be supported by an Independent Person appointed by the Administering Authority in accordance with Regulation 53A of the LGPS Regulations 2013. The Independent Person shall be a non-voting adviser to the Committee and is not a member of the Committee for the purposes of its political composition or quorum.
Declaration of Interests:
Members of the Pensions Committee including co-opted members, are required to declare any interests that they have in relation to the Pension Fund or items on the agenda at the commencement of the meeting.
Table of Functions
Functions [Table needs updating] | Delegation of Functions |
|---|---|
1. To exercise the functions delegated to the Committee by the Council as Administering Authority and Scheme Manager of the LGPS, having regard to the interests of scheme members and employers and acting in accordance with the LGPS Regulations:
| None |
2. To make arrangements for the appointment of and to appoint suitably qualified pension fund administrators, actuaries, advisers, and global custodians and periodically to review those arrangements, subject to the statutory responsibilities of the relevant asset pool company. The selection, appointment, monitoring and termination of investment managers and other investment implementation decisions shall be undertaken by the relevant asset pool company. The Committee shall monitor the effectiveness of those arrangements and the performance of the pool in implementing the Fund’s investment strategy. | None |
3. To formulate, approve, publish and keep under review the Investment Strategy Statement in accordance with the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026 and statutory guidance, having considered the principal investment strategy advice provided by the relevant asset pool company. The Committee shall determine the Fund’s investment objectives, strategic asset allocation, risk and return objectives and its strategic approach to responsible investment and local investment. | None |
4. To set the overall strategic objectives for the Pension Fund, having taken principal investment strategy advice from the relevant pool company and such other proper advice as may exceptionally be permitted by the Regulations, and to develop a medium-term plan to deliver the objectives. | None |
5. To determine the Fund’s strategic asset allocation, or to delegate such determination where the Committee considers appropriate, and to monitor the implementation of the Fund’s Investment Strategy Statement (ISS) by the relevant asset pool company. All investment management decisions below the level of the ISS, including tactical asset allocation, investment manager selection, investment selection, investment stewardship and investment cashflow management, shall be matters for the relevant pool company in accordance with the Regulations and statutory guidance. | None |
6. To make arrangements for the triennial actuarial valuation, to monitor liabilities and undertake asset/liability and other relevant studies as required, and to approve and keep under review the Funding Strategy Statement (FSS). | None |
7. To monitor the performance and effectiveness of the relevant asset pool company in implementing the ISS, including investment performance, risk, costs, stewardship, investment manager oversight and service delivery, and to hold the pool to account in the Council’s capacity as client and shareholder. | None |
8. To approve the Pension Fund Business Plan and annual budget prepared by the Senior LGPS Officer, and to monitor income and expenditure against budget and satisfy itself that sufficient financial, staffing and other resources are available for the proper discharge of the Administering Authority’s LGPS functions. | None |
9. To receive and approve an Annual Report and accounts on the activities of the Fund prior to publication. | None |
10. To make arrangements to keep members of the Pension Fund informed of performance and developments relating to the Pension Fund on an annual basis. | None |
11. To keep the terms of reference under review. | None |
12. To determine all matters relating to admission bodies. | None |
13. To review the Pension Fund’s policy and strategy documents on a regular basis and review performance against the Fund’s objectives within the business plan including stakeholder communications. | None |
14. To approve and oversee implementation of the Fund’s Training Strategy and to ensure that Committee members and co-opted members comply with the statutory knowledge and understanding requirements applicable to their roles. | None |
15. To ensure compliance with the LGPS Regulations, statutory guidance issued by the Secretary of State, requirements and guidance issued by the Pensions Regulator and relevant Scheme Advisory Board guidance, and to approve and keep under review the Fund’s Governance Strategy, Training Strategy, Conflicts of Interest Policy, Pension Administration Strategy and other statutory policies and strategies. | None |
16. Selection, appointment and termination of external Additional Voluntary Contribution (AVC) providers and reviewing performance, if outside the scope of the pool’s implementation responsibility. | None |
17. To determine the Fund’s strategic objectives and policies in relation to environmental, social and governance (ESG) considerations, and responsible investment (RI) as part of the Investment Strategy Statement, and to work collaboratively with the relevant asset pool company and other partner Funds to maximise alignment where appropriate. To monitor the pool’s implementation of the Fund’s RI objectives, including investment stewardship and voting. | None |
18. To review the risks inherent in the management of the Pension Fund. | None |
19. To consider any recommendations made or views expressed by the London Borough of Tower Hamlets Pensions Board and to provide an appropriate response to any material recommendation or concern raised by the Board. | None |
Quorum: 3 Members of the Committee
Meetings:At least four times a year in the ordinary course of business and additional meetings may be arranged as required to facilitate work. Work for the year will be agreed with the Committee to include dedicated training sessions for Committee members.
Section 3: Procedure Details
Membership of the Pensions Committee
The Council decides the composition and makes appointments to the Pensions Committee. Currently the membership of the Pensions Committee is a minimum of 7 elected Members from Tower Hamlets Council on a politically proportionate basis and the Pensions Committee will elect a Chair and Vice Chair. All Tower Hamlets Council elected Members have voting rights on the Committee and three voting members of the Committee are required to be able to deem the meeting quorate.
In addition there are two co-opted non-voting members representing employer and Scheme member interests. Although the co-opted representatives do not have voting rights they are treated as equal members of the Committee, they have access to all Committee Advisers, officers, meetings and training as if they were Council Members and have the opportunity to contribute to the decision making process.
Voting rights are restricted to elected Members as they are deemed to be fulfilling the role of Trustees as the Pension Fund with all the legal responsibilities that this entails, it was not felt appropriate to apply the same legal definition to the lay members of the Committee and hence their role as non-voting members.
Agendas for meetings will be agreed with the Chair and will be circulated with supporting papers to all members of the Committee, officers of the Council as appropriate and the Fund's Investment Advisor.
Notice of meetings and provision of agendas and other papers will comply with the Access to Information Procedure Rules.