The Avon Pension Fund is approaching a critical vote on whether to withdraw its investments from aerospace and defence companies. This £6 billion fund manages the Local Government Pension Scheme for the former county of Avon, which includes areas around Bath and Bristol. Over the past year, public sector workers in the region have campaigned passionately for divestment, citing ethical concerns that their pension money is indirectly supporting human rights violations by Israeli forces in Palestine.
However, recent polling reveals a divided membership. A survey conducted in September showed that 42% support divestment, while 47% favor maintaining current investments in the aerospace and defence sector. This split has created uncertainty about whether there is sufficient backing to proceed. The Bristol Palestine Solidarity Campaign labeled the 47% backing retention as “no clear mandate to continue funding the war industry,” yet legal advisers have clarified that the fund must achieve a “broad consensus” before making any financial decision motivated by non-financial considerations.
This issue was highlighted at a December 3 meeting of the Local Pension Board, which provides oversight to the Pension Fund Committee. Toby Simon, chair of the Avon Pension Fund Committee and a Bath and North East Somerset councillor, acknowledged the strong minority view favoring divestment, especially among younger members, though he noted it was not yet a majority stance.
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Local authorities whose employees are fund members have also weighed in. Bristol City Council and North Somerset Council have passed motions urging the fund to divest from companies producing weapons used by Israel in Gaza. At a prior committee meeting, children’s social worker Toni Mayo expressed deep personal anguish, saying her wages—from protecting children locally—are indirectly funding weapons that harm children abroad, a daily conflict for her conscience.
Currently, the Avon Pension Fund holds about £18 million (0.3% of assets) in 20 aerospace and defence companies. The fund states these companies predominantly sell to the UK, NATO, and Ukraine, with some sales linked to Israel. Notably, the fund’s exposure arises from investments in the Brunel Fund, a passive equity product that spreads investments across thousands of companies and aligns with the Paris agreement on climate change.
The potential cost of divestment isn’t from lost profits, but from administrative expenses—approximately £1 million per year—to establish a separate investment pool excluding the defence sector. This expense could decrease if other pension funds pursue similar divestment and share pool management costs.
The Avon Pension Fund already excludes companies involved in controversial weapons, such as cluster munitions and chemical arms, as well as those violating UN principles on human rights complicity. Firms like Lockheed Martin and RTX are already barred.
Demographic trends from the survey suggest women and those under 55 tend to support divestment more than men and older members. While women constitute 71% of the fund’s membership, men submitted a disproportionately higher survey response. The survey reached 20,000 randomly selected members via email, achieving a 9.5% response rate—remarkably double the usual rate for such research—and was designed to ensure statistical reliability despite response variations.
The Avon Pension Fund Committee is scheduled to finalize its decision on divestment at a public meeting on December 12 at 10 a.m. in Bath Guildhall.