The Oxfordshire Council Pension Fund Committee met on 5 September 2025, and members reviewed the fund's business plan, risk register, and governance, and discussed responsible investment and pooling reforms. The committee noted the latest risk register and approved the Firefighters' Pension Scheme Appeal Committee Terms of Reference. They also received updates on investment performance and the annual report.

LGPS Pooling Reform

The committee discussed the proposed reforms to the Local Government Pension Scheme (LGPS) pooling, following an invitation from the government. The committee agreed to endorse the approach taken by fund officers in developing the available options, so that a decision could be reached at the September 2025 meeting.

The government has stated that the Brunel Pension Partnership, of which Oxfordshire is a member, does not meet its vision for the future of the LGPS. The Minutes of the Local Pension Board meeting on 4 July 2025, noted that this increased the risk rating for Risk 18: Failure to Meet Government Requirements on Pooling to amber.

Review of the Annual Business Plan 2025/26

The committee reviewed progress against the key service priorities outlined in the Annual Business Plan for 2025/26¹. The plan's objectives include fulfilling fiduciary duties, administering pension benefits, maintaining a funding level above 100%, ensuring sufficient liquid resources, and maintaining stable employer contribution rates.

The committee reviewed progress against four key service priorities:

• Improvements to governance arrangements
• Operational effectiveness of service delivery
• Development of investment and funding service
• Service enhancements and cost reductions through increased use of technology

While most actions were rated green, the workforce strategy action was rated amber due to challenges in attracting and retaining staff. The McCloud² action was also rated amber, with an extension to August 2026 requested for complex cases.

The committee also discussed the government's consultation on access and fairness to the scheme, which covers survivor pensions, the gender pension gap, opting out, forfeiture, McCloud, transfers of additional voluntary contributions (AVCs), lifetime allowance (LTA), and refunds.

Risk Register

The committee reviewed the latest risk register, which identifies key risks to the achievement of the pension service's objectives. Risk 19, 'Failure of Pooled Vehicle to meet local objectives', was increased from green to red due to the ongoing pooling reform and the need for a new pool to implement the required asset allocation changes. Risk 12, 'Insufficient resources from Committee to deliver responsibilities', was reduced from amber to green.

Anna Lloyd, Governance and Communications Officer, had previously advised the Local Pension Board that the government's response to the Fit for Future Consultation was being reviewed by fund officers.

The committee also discussed Risk 15, 'Insufficient Skills and Knowledge amongst officers', with Mark Smith, Head of Pensions, advising that there was a national challenge around recruitment and retention of staff that is affecting every Fund.

Governance and Communications Report

The committee reviewed key governance and communication issues, including compliance with the Pension Regulator's General Code of Practice³. The fund had completed most of the required modules, with a few remaining outstanding. An increase in code of practice breaches was recorded, but these were resolved by the Employer Team.

The committee also noted the communications update and the fund's update on the Pension Regulator's General Code of Practice.

Administration Report

The committee reviewed key administration issues, including service performance measurement and debt recovery. Vicki Green, Pension Services Manager, provided an update on current vacancies and recruitment efforts. The committee noted the position of the McCloud project and the decision to exercise discretion not to reflect McCloud in some 2025 annual benefit statements.

Report of the Independent Financial Advisor

The committee considered the report of the Independent Financial Advisor, John Arthur, which provided an overview of the financial markets and the fund's investment performance. John Arthur commented on the effect on the volatile investment environment of the newly elected US President and advised that the US Dollar had weakened against all major currencies which lowered the return of US assets to a Sterling based investor. He provided advice on the Pooling decision that would be required of the new Committee, advising that whilst it had been moving in the right direction since its implementation in 2017, any benefits in cost or public market manager selection had not been seen as yet.

Following a discussion regarding the use of Crypto as an investment, John Arthur advised that he felt that the risk of criminality would be a restrictive factor in investment opportunities.

Corporate Governance and Socially Responsible Investment

The committee received a verbal report from Josh Brewer, Responsible Investment Officer, focusing on activity within the last quarter. He highlighted the Responsible Investment and Climate Change Committee and invited Councillors Levy and Crichton to join. The committee was also informed of issues raised with investment with oil and gas companies, and advised that these companies continue to be monitored to ensure they are held to account to the commitments they have made with their strategic projection to net zero.

Firefighters' Pension Scheme Appeals Committee

The committee approved the Firefighters' Pension Scheme Appeal Committee Terms of Reference.

Annual Report and Accounts and Taskforce for Climate-related Financial Disclosures (TCFD) Report

The committee received the draft Annual Report and Accounts for the Pension Fund, including the latest TCFD report, and progress against the targets set in the Fund's Climate Change Policy.

Exempt Items

The public and press were excluded from the meeting for the following items due to the likely disclosure of exempt information, as defined in Part 1 of Schedule 12A of the Local Government Act 1972:

• Investment Update from Brunel
• LGPS Pooling Reform
• Affordable Housing
• 2025 Valuation - Update

Report of the Local Pension Board

The committee noted the report of the Local Pension Board, which included a recommendation to review the use of substitute members attending the Pension Fund Committee, and to confirm the substitute for the Brunel Oversight Board. Matthew Trebilcock, Independent Chairman of the Pension Board, noted the importance of appropriate knowledge and understanding for committee members. The Board also expressed their gratitude to Angela Priestley-Gibbins for her service as employer representative on the Local Pension Board.