The Local Pension Board meeting on Friday 23 January 2026 addressed the review of the Annual Business Plan, the Risk Register, and the Governance and Communications Report. Key discussions also included updates on the Administration Report, Funding Strategy and Investment Strategy Reviews, a Member Investment Survey, and Local Government Reorganisation.

Review of the Annual Business Plan

Mark Smith, Head of Pension Services, presented the Annual Business Plan for 2025/26. The Board was informed of new draft regulations requiring a governance and training strategy, and extended individual knowledge requirements. A new requirement for an Independent Person to join the Pension Fund Committee as a non-voting member was noted, though details on qualifications and attendance were still undecided. The fund's valuation was reported to be on track, with an underspend on staff costs due to recruitment challenges. Additional costs associated with running two investment pools during a transition period were also highlighted. The Board noted the report.

Risk Register

Mukhtar Master, Governance and Communications Manager, presented the Risk Register. Increased risks related to asset manager performance and local government reorganisation were highlighted, aligning with previous Board recommendations. Ongoing challenges with Committee member training compliance and board composition were also noted. Mark Smith confirmed that three Committee members had not completed mandatory training by the deadline, which had been escalated. Concerns were raised about the ongoing vacancy for an Employer Member Representative on the Board, which could affect quorum and decision-making. Mukhtar Master assured the Board that efforts were being made to recruit an additional employer representative, particularly from academy groups, and that this was being addressed as part of the review of the Board's Constitution. The Board noted the report.

Governance and Communications Report

Mukhtar Master presented the Governance and Communications Report, detailing recent government developments including board member term extensions, progress on General Code of Practice compliance, committee training updates, breach reporting, and the upcoming review of the Board constitution. Mark Smith added that the completion of the General Code of Practice modules and additional scrutiny had placed the Fund in a strong position for an independent governance review. A query regarding an 'Other' GCOP breach was clarified as relating to a delay in issuing Firefighters' Pension Scheme annual benefit statements due to the McCloud/Sargeant cases, and did not affect the LGPS. Mukhtar Master provided an update on the review of the Board constitution, prompted by audit recommendations, and invited feedback from Board members. The Board noted the report.

Administration Report

Vicki Green, Pension Services Manager, presented the Administration Report, including performance statistics. An increase in outstanding cases was attributed to a data project that revealed a backlog, with 84% of work completed within service level agreements. A consultation with employers was launched to align service level targets with national key performance indicators. The new member portal, Engage, was set to go live, with a soft launch planned. Recruitment challenges persisted, with nine vacancies and increased reliance on agency staff. The Board expressed concerns regarding staff wellbeing and retention, with Mark Smith acknowledging sector-wide pressures. Vicki Green noted that while new systems would save time long-term, their implementation added to current pressures. The Board noted the report.

Funding Strategy and Investment Strategy Reviews Update

Gregory Ley, Financial Investment Fund Manager, updated the Board on the reviews of the Funding Strategy Statement and Investment Strategy Statement. The consultation on the Funding Strategy Statement had closed, with a final version to be presented in March. Mark Smith reported positive feedback from the Employer Forum consultation, acknowledging challenges faced by different sectors in financing benefits and contribution costs. Greg Ley detailed proposed adjustments to the Investment Strategy Statement by Apex, including reduced equities and increased private markets to lower risk and enhance inflation linkage. He confirmed that a note of the Investment Strategy workshop would be circulated to all members. The Board noted the report.

Member Investment Survey Update

Josh Brewer, Responsible Investment Manager, provided a verbal update on the Member Investment Survey. The survey received 2,000 responses, primarily from members aged 55 and over. Respondents showed strong support for the responsible investment policy and engagement. A majority supported continued investment in aerospace and defence for financial returns but also desired enhanced engagement to reduce harm to civilians. Definitions of 'local' varied, with climate change mitigation, renewables, biodiversity, SME investment, and affordable housing identified as top priorities for local investment. The Board advised that future surveys could utilise trade union communication channels to increase participation. The Board thanked the officer for the update.

Local Government Reorganisation Update

Mark Smith, Head of Pension Services, presented an update on Local Government Reorganisation and its potential impacts on the Fund. He explained the differences between reorganisation and devolution, outlined possible scenarios for Oxfordshire, and noted that new councils could be formed from 2028, with a government decision expected in summer. Potential changes to the Committee and Board, including the need for a new host authority, revised constitutions, and possible membership turnover, were highlighted. Mark Smith emphasised the anticipated increase in administrative workload and the need for clear communication to reassure scheme members that their benefits would be unaffected. The Board agreed that any developments should be reported at each meeting, and Mark Smith agreed to add this as a standard item to the Annual Business Plan report. The Board noted the report.

Items to Include in Report to the Pension Fund Committee

The Board agreed to include the following items in their report to the Pension Fund Committee:

• Training for members of the Pension Fund Committee and possible escalation to the Section 151 Officer and/or Group Leaders.
• Filling the vacancy of Employer Representative on the Board.

Items to be Included in the Agenda for the Next Board Meeting

The Board agreed to include the following as an agenda item for the next meeting:

• Inclusion of the item Local Government Reorganisation as a regular update in the Annual Business Plan.
• Feedback on the comments received on the Board constitution review.

Exempt Items

The Board resolved to exclude the public for the duration of items 16, 17, 18, and 19 due to the likely disclosure of exempt information. The Board noted the reports on Transitional Housing Investment, Workforce Planning, 2025 Valuation Results, and LGPS Pooling Reform, which were discussed in private session.