The Devon Pension Board met on Tuesday 13 October 2026 to review employer performance, the pension fund risk register, and the investment strategy statement. Key decisions included noting the employer performance monitoring report, approving the draft governance strategy for consultation, and reviewing the fit for the future guidance.

Employer Performance Monitoring Report

The Board reviewed the employer performance monitoring report, which detailed the timely payment of contributions and the receipt of administration data. Charlotte Thompson, Director of Finance and Public Value, presented the report, highlighting that there were only three late payments for contributions in the quarter ending 30 June 2026, which was noted as a positive development. The report also confirmed that a previously problematic admitted body had no further breaches regarding contributions or administration after meetings with Peninsula Pensions colleagues. Gareth, from Peninsula Pensions, provided further detail on administration data, noting that fines for late data submission were low, with two employers fined a total of £300. He explained that the fines were designed to encourage timely data submission rather than to generate revenue, and that the majority of fines were paid promptly. The Board was assured that the system was working effectively, with a significant reduction in outstanding data queries compared to the previous year.

Pension Fund Risk Register

The Board considered the Pension Fund Risk Register, which identified and assessed key risks to the fund. Charlotte Thompson explained that revisions had been made to the register following concerns raised at the previous meeting regarding the scoring of inherent versus post-mitigation risks. It was noted that some inherent scores had not migrated correctly to the new system and had now been amended. A new risk, DPF22 Local Government Reorganisation (LGR), was added to the register, acknowledging the potential for a change in the administering authority even though the LGR project was currently paused. The register now contained 41 risks, with 21 relating to Devon Pension Fund management and 20 to Peninsula Pensions. Two high risks remained: DPF01 Investments – External Market Risks and PP01 Cyber Security.

Investment Strategy Statement Consultation

The Board was asked to review and provide comments on the draft Investment Strategy Statement (ISS) as part of a consultation process. Charlotte Thompson explained that the revised ISS was required by the Fit for the Future regulations and that LPPI (Local Pensions Partnership Investments) had been engaged to provide advice. The draft ISS mapped the existing strategy into a new template, with sections covering investment principles, financial objectives, risk appetite, and strategic asset allocation. Responsible investment and stewardship priorities remained largely unchanged. Mark, from LPPI, clarified that the version of the ISS on the website was incorrect, and directed members to the correct version available via the Investment and Pension Fund Committee papers. Alistair Macintosh suggested referencing how member views, particularly on ethical and responsible investment, were taken into account. Dominic Walshe raised concerns about the target of 100% listed equities aligning with the Paris Agreement by 2030, suggesting it might be unrealistic given market sentiment. Charlotte Thompson clarified that alignment meant having plans to achieve net zero by 2050, not necessarily achieving it by 2030. The deadline for comments on the draft statement was 31 October.

Pension Fund Governance Strategy Consultation

The Board was asked to review the draft Governance Strategy for consultation. Charlotte Thompson explained that the strategy had been revised to comply with the Fit for the Future regulations, introducing new sections on the role of the LGPS Senior Officer and the Independent Person. Andy Bowman raised concerns about the role of the Independent Person, suggesting a clearer dotted line for their advisory capacity, and reiterated that the Pension Board was independent of Devon County Council.

Fit for the Future Guidance and Compliance

Phil Edwards presented a report summarising the Fit for the Future guidance, which sets out requirements for compliance with the Pension Schemes Act 2026. The guidance focuses on three core areas: fund governance, asset pooling, and the investment strategy statement. The report detailed the timelines for compliance, including the requirement for all assets to be under pool management by 3 September 2026 and the appointment of an LGPS Senior Officer and Independent Person by 31 December 2026. Devon County Council had already become a shareholder in LPPI, meeting the asset pooling requirement. The appointment of Mark as LGPS Senior Officer and Anthony Fletcher as Independent Person had also been confirmed. The ISS was out for consultation, with a compliance statement expected by March 2027. A question was raised regarding local regional investments and the existence of a strategic regional authority, with Charlotte Thompson confirming the existence of the Devon and Torbay Combined County Authority, though discussions on its role in local growth plans were ongoing.

Peninsula Pensions Administration Update and Performance Statistics

Gareth provided an update on Peninsula Pensions' performance, reporting a 96% performance against statutory requirements for the quarter ending 30 June 2026. He highlighted a significant reduction in outstanding work, with 1,117 cases outstanding compared to 3,613 in the previous year. The McCloud remedy implementation was progressing, with most cases either completed or awaiting information from third parties. The Pension Dashboard programme was in its low-volume testing phase, with Peninsula Pensions participating in a pilot to ensure data accuracy. The Board expressed thanks to the staff for their improvements in performance.

Internal Audit Update

Alexis Saffin presented the Internal Audit Progress Report for 2026/27. The report indicated that one risk-based assurance audit on the Actuarial Valuation and Funding Strategy had been completed with substantial assurance. Work on fiduciary duty was underway, with the remaining seven audits scheduled for quarters three and four. The Board was asked to note the progress and provide any comments to the Investment and Pension Fund Committee.

Future Work Programme

The Board reviewed its future work programme, which included standing items such as minutes of the Investment and Pension Fund Committee, the Pension Fund Risk Register, and Peninsula Pensions' performance. Future agenda items for 2027 included budget updates, the Fair Deal policy, and the annual internal audit report. Alexis Saffin provided clarification on the timing of internal audit updates, suggesting a move to the October meeting for the internal audit update and the inclusion of the audit plan in the February meeting. Nick raised a question about the potential impact of Artificial Intelligence (AI) on council processes and pension schemes. Gareth responded that Peninsula Pensions was exploring automation and robotics, not necessarily AI in its purest form, to improve efficiency, citing examples such as the annual benefit statement and the potential for transcribing member calls. He stressed the importance of a mindful approach to AI introduction, considering member perspectives.

The meeting concluded with the Chair thanking attendees and formally closing the meeting. The next meeting was scheduled for 1 February 2027 at 10:00 am.