The Pension Fund Committee of Oxfordshire Council met on Friday 05 June 2026 to discuss the review of the Annual Business Plan for 2026/27, the Fund's risk register, and governance and communications. The committee also received updates on the independent investment advisor's report, corporate governance, socially responsible investment, and funding and investments.

Review of the Annual Business Plan 2026/27

The committee was scheduled to review progress against the key priorities outlined in the Annual Business Plan for 2026/27. This plan sets out the overall objectives for the Oxfordshire Pension Fund, which include fulfilling fiduciary duties, administering pension benefits in accordance with LGPS regulations, maintaining a funding level above 100%, ensuring sufficient liquid resources, and maintaining stable and affordable employer contribution rates. The report detailed progress against four key service priorities: improving governance arrangements, enhancing operational effectiveness and service delivery, developing investment and funding services, and delivering service enhancements through technology. Each priority was assessed against measures of success rated as Green (met or on target), Amber (progress made, but further action required), or Red (insufficient progress or actions). The report highlighted that four out of five measures of success under the governance objective were rated green, with the Workforce Strategy action assessed as red due to ongoing challenges in recruitment, attraction, and retention.

Risk Register Report

The meeting was scheduled to receive the latest position on the Fund's risk register, including any new risks identified since the previous meeting. The report presented current risk scores in terms of impact and likelihood, along with target risk levels and mitigation action plans. The Local Pension Board had reviewed the risk register and recommended reviewing Risk 19 (Failure of Pooled Vehicle to meet local objectives ) with a view to reducing its rating, as this was considered beyond the control of officers and largely driven by government policy on pooling. They also recommended adding a new risk related to Local Government Reorganisation and its potential impact on the host authority's provision of support services to the Fund. Two new emerging risks had been identified and added: Risk 25, Insufficient workforce resources due to ineffective recruitment, attraction and retention, and Risk 26, Local Government Reorganisation, which could potentially lead to problems with fund governance and operations. The report also noted an increasing risk rating for Insufficient Skills and Knowledge amongst officers from amber to red, exacerbated by vacancies and the use of agency staff.

Governance and Communications Report

This report covered key governance and communication issues for the Fund, including an update on General Code of Practice Compliance for 2026/27. The General Code of Practice consists of 51 modules, with 37 applying to the LGPS and covering areas such as Governing Body, Funding and Investments, Administration, Communications and Disclosure, and Reporting to The Pensions Regulator. The Fund had undertaken a project to review compliance against 20 modules in 2024/25 and 17 modules in 2025/26, with quarterly updates provided to the committee. An Oversight & Challenge exercise by Hymans in 2024/25 concluded the Fund was in a good position. A similar exercise was planned for 2025/26. The report detailed a 12-month plan for 2026/27 to improve and maintain compliance, including completing outstanding actions, supporting the Firefighters' Pension Service, and conducting an Oversight & Challenge review. The report also included an update on Pension Fund Committee training, with a focus on developing members' knowledge and skills to meet regulatory requirements, including the LGPS Online Learning Academy (LOLA) and the National Knowledge Assessment (NKA). The committee was asked to approve a revised Local Pension Board Constitution, which included minor amendments such as removing the requirement for biennial reviews and updating mandatory training references. Finally, the report provided an update on regulatory breaches for January to March 2026, detailing breaches related to contributions and data, and an update on the Fund's website, which had been successfully launched in April 2026.

Report of the Independent Investment Advisor

This report was scheduled to cover an overview of the financial markets, the overall performance of the Fund's investments against the Investment Strategy Statement, and commentary on issues related to specific investment portfolios. The report included the quarterly investment performance monitoring report from Brunel. It was noted that despite geopolitical instability, the Fund had achieved positive returns, with Global Equities increasing by 21% in local currency terms over the past year. However, the three-to-five-year fund performance had lagged benchmarks, primarily due to underperformance in the global high alpha and sustainable equity portfolios managed by Brunel. Asset allocation changes, which had increased UK exposure, inflation-linked assets, and infrastructure, and reduced US equity exposure, were discussed. Concerns were expressed regarding the need for an independent advisory role to the committee to ensure accountability and challenge, especially in light of investment decision-making shifts during the move to the new Pool.

Corporate Governance and Socially Responsible Investment

This item provided an opportunity to raise any issues concerning Corporate Governance and Responsible Investment that needed to be brought to the attention of the Committee. An update on responsible investment activities was presented, including the results of a member survey on investment priorities, engagement with companies such as Microsoft, and the climate alignment process. The member survey indicated strong support for responsible investment, with two-thirds prioritising positive impact and one-third prioritising financial returns. The survey also explored attitudes towards defence, aerospace, and local investment. An update on the climate alignment process noted that 12 companies were identified as climate controversial, with recommendations for divestment from three of those. The committee stated its intention to share its robust framework with LGPS Central and seek alignment for responsible investment practices.

Funding and Investments Update

This report covered updates on fund cashflow monitoring, pool transition costs, and local investments. The committee was recommended to note the contents of the report. The report detailed updates on the finalisation of the 2025 valuation, responses to the consultation exercise, and comments from employers. It also covered the approval of the Funding Strategy Statement and supporting policies, the Strategic Asset Allocation Review report, and the Investment Strategy Statement, Local Investment Policy, and Cash Management Policy for consultation.

Exempt Items

The committee was recommended to exclude the public for the duration of items 15, 16, and 17, as it was likely that exempt information would be disclosed. These items included a pooling transition update, a local government reorganisation fund structure update, and the approval of a Senior LGPS Officer. The reports relating to these items were not made public and were regarded as strictly private to members and officers entitled to receive them.

Pooling Transition Update

An LGPS Central representative was scheduled to present a transition progress report to the committee. The committee was recommended to note the report. Following detailed discussions, the committee requested a detailed transition plan providing more information on the funds Oxfordshire Pension Fund would move into under LGPS Central, including their structure and performance.

Local Government Reorganisation Fund Structure Update

This report updated the committee on the approach to identifying the appropriate Fund structure post Local Government Reorganisation (LGR). The committee was recommended to review an independent report from Barnett Waddingham, note the details within, and agree the approach for Fund officers to explore further options, including alignment with a new unitary authority and a new Single Purpose Pensions Authority. The committee was also asked to agree that Fund officers continue engagement with stakeholders and the Government ahead of any formal designation decision by the Secretary of State.

Approval of Senior LGPS Officer

This report presented the final recommendation for the appointment of the Senior LGPS Officer. The committee was recommended to review an independent report from Aon, note the suggested actions, and agree the appointment of the Senior LGPS Officer as the Head of Pension Fund role. Further updates were to be provided to the committee as Fit for the Future changes were implemented over the next seven months.