The Pension Fund Committee of Oxfordshire Council scheduled a meeting on 6 June 2025 to review the fund's performance, risk management, and governance, as well as to consider policy updates and the firefighters' pension scheme. A key item for discussion was the government's instruction for the fund to find a new pooling partner following concerns about the Brunel Pension Partnership. The committee was also expected to review progress against the key service priorities set out in the Annual Business Plan 2025/6.

Here's a breakdown of the main topics:

Government Requirements on Pooling

The committee was expected to note the latest position on the fund’s risk register, including an increase in the risk rating for Risk 18: Failure to Meet Government Requirements on Pooling.

Following the government's instruction for funds within the Brunel pool to find a new pool, the risk was reassessed, and its rating increased to amber. The report stated:

Further to the recent ‘Fit for the Future’ Consultation, central government have now advised funds that are part of the Brunel pool to find another pool to move to. A letter to Administering Authorities dated the 9 April 2025, concluded that Brunel’s proposal does not meet the Government’s vision for the future of the LGPS. As such, this would naturally increase the risk rating.

The committee was to consider the approach taken by fund officers in developing options to enable a decision in September 2025.

Investment Performance

The committee was scheduled to receive a report from the Independent Financial Advisor covering an overview of the financial markets and the overall performance of the Fund’s investments against the Investment Strategy Statement. The report included the quarterly investment performance monitoring report from Brunel.

According to the Quarterly Investment Report, the fund fell by -2.5% in the first quarter of 2025 to a value of £3.630bn, underperforming its benchmark which fell by -1.8%. This underperformance was attributed to poor performance from the Global and UK equity portfolios managed by Brunel. The report noted a volatile investment environment due to newly elected President Trump's policies, which destabilised financial markets.

The Independent Financial Advisor's report also recommended that the Committee consider hedging a proportion of the Fund’s Global Equity currency exposure, suggesting hedging 50% of the Strategic Asset Allocation weighting to Global Equities back into Sterling.

Annual Business Plan 2025/26

The committee was expected to review progress against the key service priorities set out in the Annual Business Plan for 2025/6. The plan outlined key objectives for the Oxfordshire Pension Fund, including fulfilling fiduciary duties, administering pension benefits, maintaining a funding level above 100%, ensuring sufficient liquid resources, and maintaining stable employer contribution rates.

The service priorities for the year included:

• Delivering further improvements to the governance arrangements of the Fund
• Delivering further operational effectiveness of the service delivery/administration function, including delivery of regulatory changes.
• Developing further the Fund’s Investment and Funding service.
• Delivering service enhancements and cost reductions through increased use of technology.

Governance and Communications

The committee was scheduled to receive a report covering key governance and communication issues for the Fund, including a report on any breaches of regulation in the last quarter. The report included an update on the progress made regarding the Pension Regulator’s General Code of Practice¹.

The committee was also expected to review and approve the revised:

• Communications Policy
• Governance Policy
• Governance Compliance Statement
• Regulatory Breaches Policy

Administration Report

The committee was set to receive an update on key administration issues, including service performance measurement, the debt recovery process, and any write-offs agreed in the last quarter.

The report included amendments made to the quarterly performance statistics and member self-service statistics to provide comparison against the previous quarters throughout the last year.

Firefighters’ Pension Scheme Appeals Committee

The committee was expected to review and approve the Terms of Reference of the Firefighters’ Pension Scheme Appeals Committee. The report stated that one of the functions of the Pension Fund Committee is to assist the Scheme Manager in administering the various Firefighter Pension Schemes. The committee has delegated authority to make decisions on behalf of the Scheme Manager. The report also noted that pension schemes are required to maintain a formal complaints procedure, called the Internal Dispute Resolution Procedure (IDRP).