The Devon Pension Board met on Tuesday 14 July 2026 to discuss employer performance monitoring, the pension fund risk register, and administration performance statistics. The Board received an update on employer performance monitoring, reviewed the Devon Pension Fund Risk Register, and received an update on Peninsula Pensions' administration performance.

Employer Performance Monitoring

The Board received an update on the monitoring of employer performance regarding the timely payment of contributions and the receipt of administration data. It was noted that while most employers submitted contributions on time, there were instances of late payments and one employer in liquidation with an unpaid contribution. Peninsula Pensions has been engaging with employers who have shown a history of late payments or data submission issues, including the use of fines as outlined in the Pension Administration Strategy. The Board was informed that fines are reviewed periodically to ensure they remain appropriate and cover administrative burdens.

Devon Pension Fund Risk Register

The Board reviewed the Devon Pension Fund Risk Register, which details identified risks, current mitigation measures, and planned improvements. The register has been migrated to a new risk management system, and the presentation of risks has been updated with colour-coding for risk levels. Two high risks were identified: Investments – External Market Risks (DPF01) and Cyber Security (PP01). The Board discussed the methodology for scoring risks, particularly instances where inherent and current scores were identical, and requested further review of these specific risks. The transition from Brunel to LPPI has been completed, with associated risks removed, although new risks may emerge as LPPI rationalises portfolios.

Peninsula Pensions Administration Update and Performance Statistics

Gareth Shackler, Director of Finance and Public Value, presented an update on Peninsula Pensions' administration performance. Overall performance against statutory requirements was reported as 95%, with high-priority procedures at 94%. The team has been focused on processing outstanding deferred benefit and amalgamation cases, as well as historical rectification calculations related to the McCloud Age Discrimination ruling. The number of outstanding workflow cases has significantly decreased.

The report highlighted progress on the McCloud remedy, with most cases identified for review being completed or awaiting information from third parties. The Pension Dashboard Programme is in its testing phase, with Peninsula Pensions having already achieved three confirmed matches. The team is preparing for a potential spike in engagement when the dashboards go live, with enhanced telephony training and plans to explore automation for managing the 10-day confirmation timeframe.

The Board heard about significant improvements in onboarding and ongoing training for Peninsula Pensions staff, which are expected to further enhance performance. Compliments received had increased, and complaints remained low. The Board noted the positive trend in performance metrics, with over 90% compliance across all areas and a focus on achieving internal targets of 10 working days for many processes.

Local Government Pension Scheme (LGPS) Update

Charlotte Thompson provided an update on developments affecting the LGPS. The statutory guidance for the 'Fit for the Future' changes, covering Investment Strategy Statements, Fund Governance, and Asset Pooling, had been received. A detailed review of this guidance and the fund's compliance will be presented at the next Board meeting.

A legislative change restricting salary sacrifice pension contributions to £2,000 per year, effective from April 2028, was noted. This will primarily affect shared cost AVC arrangements offered by some employers. The SCAPE discount rate has increased, which will impact actuarial factors used for transfer and early retirement calculations, potentially causing administrative work to be put on hold.

The interim report from the Pensions Commission was also discussed, highlighting concerns about low and middle earners' retirement savings, a significant number of adults not saving into pensions, and the trend of private pension pots being accessed early for large expenses.

Future Work Programme

The Board reviewed its future work programme, with items such as Fit for the Future implementation and Internal Audit updates scheduled for October 2026. The programme aims to ensure a comprehensive review of the Devon Pension Fund's management and administration.

Internal Audit Progress Report

The Board received an update on internal audit progress. Outstanding actions from previous audits were noted, with one medium risk identified regarding Pension Administration Strategy compliance. The timetable for the 2026/27 audit programme was presented, including audits on new pooling arrangements, fiduciary duty, and employer data quality. Final audit reports had been issued for Employer Interface - Data Quality and Engagement, which resulted in a Limited Assurance opinion due to a lack of employer engagement. Other reports on the Code of Practice and Pension Administration Strategy compliance received Substantial Assurance.

Investment and Pension Fund Committee Minutes

The Board noted the minutes of the Investment and Pension Fund Committee meeting held on 26 June 2026. Discussions at that meeting included risks related to investment in AI, the internal audit annual report, and a Notice of Motion on Divestment. The Committee decided not to make a recommendation to Council on divestment but requested that LPPI explore the issue through the Partner Fund Strategic Forum. The Committee also reviewed the Fund's climate change policy progress and approved the Pension Fund Budget for 2026/27. An update on investment pooling arrangements with LPPI was also noted, along with the approval of a draft Training Strategy.

Board Membership Update

The Board noted updates to its membership, including the re-appointment of Dominic Walshe as an Employer Representative, the appointment of Heather Timbrell as a Fund Member Representative, and the appointment of Councillor Mick Cockerham as an Employer Representative.