The Pension Board of Bath & North East Somerset Council met on Thursday 10 September 2026 to discuss a range of reports concerning the administration, governance, and future strategy of the Avon Pension Fund. Key topics included updates on the Fit for the Future reforms, the administration performance report, and a review of the fund's risk management framework.

Administration Performance Report

The Board was scheduled to receive an update on the administration performance of the Avon Pension Fund, focusing on key performance indicators (KPIs) and service level agreements (SLAs) up to July 2026. The report highlighted that in the first quarter of 2026, 87% of cases were completed within SLA times, against a target of 90%. Retirement quotes were identified as an area for process improvement, with only 60-70% of quotes resulting in a member proceeding with retirement. The report also detailed a vacancy rate of 9.4% within the Operations team, impacting performance, and noted that while overall KPI cases outstanding under 31 days had risen, the team aimed to maintain 90-95% for under 31-day processing. The Oasis Community Learning direction order, which consolidates LGPS accounts for academies, was also discussed, impacting approximately 1,200 members within the Avon Pension Fund.

Fit for the Future Update

A significant portion of the meeting was dedicated to the Fit for the Future reforms, which took effect from 1 April 2026. The report outlined the required changes, including the appointment of a Senior LGPS Officer and an Independent Person, the establishment of Independent Governance Reviews, and the development of a Governance Strategy, training strategy, and conflicts of interest policy. Enhanced knowledge and understanding requirements for board members and officers were also detailed, along with the mandatory Pensions Administration Strategy. The implementation plan included approvals of revised governance documents in September 2026, new terms of reference at Council in November 2026, and formal appointments by December 2026.

Annual Governance Review

The Board was scheduled to review the annual governance arrangements for the Pension Board itself. The review highlighted full attendance at meetings by all current board members, completion of induction training for new members, and good progress with online training modules. The report noted that a couple of register of interest forms required updating. The terms of reference for the Pension Board were also reviewed in line with the Fit for the Future requirements, with main changes including new regulatory requirements, the introduction of statutory roles, and enhanced skills and knowledge requirements for members.

Pension Board Annual Report 2026

The Board was to review and approve its annual report for the period 1 August 2025 to 31 July 2026. The report summarised the Board's activities, including its support for the Avon Pension Fund in maintaining governance, administration, and regulatory compliance. Key areas of focus included the implementation of Fit for the Future reforms and the transition of investment pooling arrangements. The report also detailed the Board's training activities and outlined the forward plan for 2026/27, which included regular reviews of the workplan, risk register, and regulatory updates, alongside specific items such as the Pension Board's terms of reference and the Pension Fund's annual report.

Legislation Update

An update on legislative changes affecting the Local Government Pension Scheme (LGPS) was scheduled. This included information on ministerial appointments, the progress of the Pension Schemes Act 2026, and updates on consultations regarding elected member pensions, academy consolidations, and the New Fair Deal. The report also covered changes related to Access and Fairness, including survivor benefits, the gender pension gap, and the McCloud remedy. Developments concerning the Pensions Dashboard, pension taxation, and the SCAPE discount rate were also on the agenda.

Risk Management Review

The Board was to receive a quarterly review of the fund's risk register. The report indicated that while no risk scores had changed, one new risk, NR18 People experience loss with staff leaving and internal moves, had been added to reflect the risk of losing experience from the Fund, particularly within the Member Services Team. The top three risks identified were: NR06 - Loss of IT, including cyber attack and loss of power; NR10 - Failure to earn investment returns as per Funding Strategy; and NR02 - Regulatory Changes.

Governance Update

This item was intended to provide updates on the workplan and training plan for Pension Board members, as well as any necessary governance updates. The workplan for 2026 was attached, detailing items to be reviewed at each meeting, including administration performance, investment updates, and regulatory matters. The training plan included workshops on Investment Strategy Review and Cyber Security, alongside online learning modules from Hymans Robertson covering various aspects of LGPS governance and administration. An action plan for compliance with The Pensions Regulator's General Code of Practice was also presented.

Investments Verbal Update

The Group Manager for Funding, Investment & Risk was scheduled to provide a verbal update on investment matters.