Agenda item

10.20am

This report provides an update on progress against the key priorities set out in the Annual Business Plan for 2021/22, including the transition of assets to Brunel, an update on the proposals from the independent governance review, the implementation of the climate change policy and the latest position on the Mc Cloud remedy.

The Committee is RECOMMENDED to:

a.       note progress against each of the key service priorities as set out in the report;

b.       agree future membership of the Climate Change Working Group;

c.       comment on the proposal from the Local Pension Board that a representative of the Committee attends all future meetings of the Board to answer questions from Board members on decisions made at the most recent Committee meeting;

d.       agree a draft outline for future attendance of Brunel Officers at this Committee.

The Service Manager for Pensions informed Members that the report set out the latest progress against the key service priorities set in the business plan for the Pension Fund for 2021/22. 

The four key objectives for the Oxfordshire Pension Fund were:

•To administer pension benefits in accordance with the LGPS regulations, and the guidance set out by the Pensions Regulator

•To achieve a 100% funding level

•To ensure there are sufficient liquid resources to meet the liabilities of the Fund as they fall due, and

•To maintain as near stable and affordable employer contribution rates as possible.

One of the service priorities was to deliver key progress on the implementation of the Climate Change Policy. The Committee was informed that there had been limited progress in this area partially due to the local election process restricting the ability to hold meetings of the Climate Change Working Group and resources prioritised on closing the Pension Account Accounts.

Discussion took place on the membership of the Climate Change Working Group and it was agreed that the membership should be the Chair and Vice Chair of this Committee, a scheme member representative (Steve Moran), a representative from Fossil Free Oxfordshire, Alistair Bastin (Representative from the Local Pension Board) and the Independent Financial Adviser. Members agreed that once the final scheme employer representatives had been appointed, that further Committee Members could be appointed.

A second service priority was the delivering of further improvements to the governance arrangements of the Fund.  Officers had continued to meet regularly with Hymans Robertson to develop action plans to deliver against the 9 outstanding actions of the independent governance review carried out by Hymans.

Details of the proposals to the September meeting were provided. Discussion took place on the revised training policy and training programme, which included regular assessments of the skills and knowledge of the Committee and Board Members and supporting officers.

The Service Manager for Pensions provided the background to the priority to improve the data management arrangements between the Fund and both scheme employers and scheme members, particularly around the retrospective work to remedy the age discrimination issues from the McCloud/Sargeant court cases. It was noted that the Committee would have to make a policy decision on the amount of resources it wished to allocate to this at some stage.

Another priority was to review the arrangements with Brunel following the transition of the majority of Fund assets to Brunel portfolios. 

Members were informed that the Fund was in the middle of the transition process for the fixed income assets, and on completion, 80% of the Funds’ assets would be invested in Brunel portfolios.  A breakdown was provided of the remaining £600m held outside Brunel which provided the Committee with flexibility to make minor amendments to its strategic asset allocation.

Discussion took place on the current investment reports from Brunel and on the frequency with which the Committee wanted to see officers from Brunel to question them on the portfolio performance. It was agreed that the Chief Investment Officer be asked to attend annually, with the option of requesting attendance of other officers when specific issues or concerns were raised.

RESOLVED – (1) That the progress against each of the key service priorities as set out in the report be noted.

(2) That approval be given to the future membership of the Climate Change Working Group as follows: Chair and Vice-Chair of this Committee, a scheme member representative (Steve Moran), a representative from Fossil Free Oxfordshire, Alistair Bastin (Representative from the Local Pension Board) and the Independent Financial Adviser.

(3) That approval be given to the Chair of this Committee (or representative in his absence) to attend future meetings of the Local Pension Board to answer questions from Board members on decisions made at the most recent Committee meeting;

(4) That it be agreed that in relation to the attendance of Brunel at meetings of this Committee, that the Chief Investment Officer be asked to attend annually, with the option of requesting attendance of other officers when specific issues or concerns were raised.