The Isle of Wight Pension Fund Committee was scheduled to meet to discuss the draft statement of accounts, an internal audit update, and a business plan update. The committee was also expected to discuss a motion regarding investment in companies that may be enabling the continuing genocide in Gaza. Some of the items on the agenda were expected to be discussed with the public and press excluded from the meeting.

Motion Regarding Investment in Gaza

Councillor Christopher Jarman, Group Leader, put forward a motion for discussion. The motion noted:

• The right of Israel and Palestine to exist in peace.
• The ongoing humanitarian catastrophe in Gaza.
• That credible international bodies and human rights organisations have described the situation as amounting to genocide and crimes against humanity.

The committee was asked to consider that pension funds should be invested ethically and in a manner consistent with international law and human rights, and that continuing to invest in companies complicit in or enabling violations of international law undermines the values of the authority and the trust of scheme members.

The motion proposed that the committee should:

• Engage with fund managers to strongly urge them to avoid any direct or indirect investment which may or may be seen to be supporting or enabling the continuing genocide in Gaza.
• Write to the relevant national pension oversight bodies and the UK Government urging them to support ethical investment standards across all LGPS funds.

Business Plan Update

The committee was scheduled to discuss an update to the 2025/26 business plan, which included the latest business activities, the risk register, the latest breaches log and the latest developments with legislation and regulation.

The business plan was written against the uncertainty around the government's published consultation on proposals relating to the Local Government Pensions Scheme (LGPS) and asset pooling. Key work centred around the pooling agenda set by government. The preliminary decision by ACCESS funds to join separate pools would mean significant work would need to take place at fund level.

The updated risk register included the following changes:

• Risk 6: The level of risk reflected had increased, with the committee having expressed its concerns at the capacity to take on expected training.
• Risk 24: The direction of travel meant this was now assessed as high risk. Certain areas of work had, by tradition, been undertaken by the fund when they are more rightly employer duties of the council.
• Risk 26: The fund was at a disadvantage, with considerable knowledge lost during 2024 with two key officers leaving.
• Risk 28: Lack of officer time given the pooling agenda from government had meant compromises in procurement work, with extended contracts being required.
• Risk 29 (new): Decisions taken without adequate information or consideration of risks, and the Pension Committee being susceptible to instability with appointments at wider council, was assessed as a high risk.
• Risk 30 (new): Lack of representation on Committee or Board.
• Risk 31 (new): Lack of control over Fund budget.

The breach log for the fund for 2025/26 was also to be discussed, as well as a legislation and regulation tracker to help committee members monitor external and internal updates regarding new legislative requirements and guidance that may impact the fund.

The committee was also scheduled to note a draft training plan for 2025/26, and the fact that Southern Housing and Sovereign Housing were potentially exiting the pension scheme.

Internal Audit Plan

The committee was asked to approve the 2025/26 Pension Fund Internal Audit Plan. The plan included four individual reviews:

• Compliance with the Pensions Regulator's Code of Practice (CoP).
• Resourcing.
• Pension Administration.
• IT Follow-up, following the 2024/25 audit of the Altair Pension System.

The Code of Practice identifies that an Effective System of Governance (ESOG) should include processes and procedures to ensure the following areas are correctly managed:

• Management of activities
• Organisational structure
• Investment matters
• Communications and disclosure

The Code of Practice states that the ESOG should be subject to regular internal review, to confirm whether each element is functioning as intended and if any changes are necessary. All elements of the ESOG should be reviewed every three years.

Draft Statement of Accounts

The committee was asked to agree the draft annual report and accounts for the year ended 31 March 2025, subject to any changes from external audit. The draft statement of accounts indicated the fund's net assets as being £810.1m as at 31 March 2025, an increase of around £34.6m compared with the previous year's figure of £775.5m.

The accounts were published later than the statutory deadline of 30 June, and were not published until 16 July 2025 due to significant staff turnover during 2024/25.