The Surrey Local Pension Board is scheduled to meet on Monday 2 November 2026 to discuss a range of important matters concerning the Surrey Pension Fund. Key topics include updates on the fund's financial performance, investment strategy, and the significant implications of Local Government Reorganisation (LGR) for the fund's future structure.

Surrey Pension Fund Committee Summary Update

The Board will receive a summary of the Surrey Pension Fund Committee meeting held on 14 September 2026. This update is expected to cover discussions on governance, administration, investment, and risk management matters relevant to the fund's operations. The report highlights that the Committee reviewed the fund's investment performance for Quarter 1 2026/27, noting a strong return of approximately 10%, bringing the fund's value to £7.4 billion. Discussions also focused on responsible investment and stewardship activities, including engagement outcomes with Border to Coast and Legal & General, and the draft Climate-Related Financial Disclosures report. The Committee also approved enhancements to the fund's risk management framework, including a revised risk scoring methodology and expanded impact framework.

Surrey Pension Team Overview

A comprehensive overview of the Surrey Pension Team's activities for July to September 2026 will be presented. This report will detail performance metrics across various areas, including Customer Operations, where an overall score of 97% was achieved, with 60% of retirements processed via the self-service route. The McCloud remediation project is reported as complete, with 28,835 of 29,942 eligible records processed. The report also covers Fund Performance, noting a 10% increase in fund value to £7.4bn over the quarter, and People metrics, including staff retention rates. Financial updates will detail contribution receipts and benefits paid, alongside operating expenditure forecasts. The appointment of George Graham as the new Independent Person to the Pension Fund Committee will also be highlighted.

Implementation of Surrey Pensions Authority

A significant item on the agenda is the implementation plan for Local Government Reorganisation (LGR) concerning the Surrey Pension Fund. This report outlines the delivery of a Single Purpose Pension Authority, which will become the administering authority of the fund from 1 April 2027. The Surrey (Structural Changes) (Pensions etc.) Order 2026 has been laid in parliament, and the Surrey Pensions Authority (SPA) formally came into existence on 5 October 2026. The report details the appointment of members to the SPA, with the first meeting scheduled for no later than 1 February 2027, where key decisions on its constitution, budget, and statutory officers will be made. The transition is being managed as part of Surrey's wider LGR Programme, with a detailed implementation plan categorised into activities for determining the new authority, essential operational transitions, and those specific to the SPA's creation.

Investment Strategy Statement

The Board will consider the draft Investment Strategy Statement (ISS), which has been revised to comply with the Fit for the Future reforms and the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026. The draft ISS reflects updated statutory guidance and advice from investment consultants and advisors. Key changes include a refined definition of roles between the Administering Authority and the Pool (Border to Coast Pensions Partnership), a strengthening of the principle to take only necessary investment risk, and the quantification of return, risk, cashflow, liquidity, and local investment objectives. A local investment target range of 0% to 3% has been set, focusing on Surrey and its wider economic region. The report also outlines the proposed consultation, approval, and publication timetable for the ISS, with final approval anticipated by March 2027.

Governance Strategy

A report on the Governance Strategy will be presented, developed in accordance with the Local Government Pension Scheme (Amendment) (Governance) Regulations 2026. This strategy sets out the fund's governance arrangements, objectives, decision-making framework, and oversight mechanisms, defining the roles of Surrey County Council, the Pension Fund Committee, the Local Pension Board, the Independent Person, the LGPS Senior Officer, statutory officers, and professional advisers. The strategy aims to support compliance with LGPS regulations and statutory guidance, promote transparency, accountability, and stakeholder engagement.

Risk Register Update

The Surrey Pension Team's Risk Register for Quarter 2 of 2026/27 will be reviewed. The updated register reflects changes in risk exposure, mitigating actions, and risk assessments identified during the quarter, in accordance with the revised risk scoring methodology. The report highlights seven risks with an overall score of 12 or above, including the Impact of Devolution/LGR and Returns impacted by market Volatility/performance.

Surrey Pension Fund Internal Audit Progress Report

This report provides an update on the work completed by Internal Audit in Quarters 1 and 2 of 2026/27. Two audit reports were finalised: Pension Fund Pensioners Payroll, which received 'Substantial Assurance,' and Pension Fund LGPS Governance Guidance Preparedness, which received 'Reasonable Assurance.' The report also details the ongoing and planned audit work for the remainder of the 2026/27 financial year, including reviews related to the Single Purpose Pension Authority implementation.

Conflicts of Interest Policy

The Board will consider an updated Conflicts of Interest Policy. This revised policy ensures alignment with the LGPS governance framework, relevant legislation, and statutory guidance. It strengthens arrangements for identifying, recording, managing, and monitoring conflicts of interest for all individuals involved in the fund's governance and management, including specific provisions for the new Independent Person role.

LGPS - Recent Developments

A background paper will be presented considering recent developments within the Local Government Pension Scheme. This report covers updates from various bodies including the Ministry of Housing, Communities and Local Government (MHCLG), the Government Actuary's Department (GAD), the Local Government Association (LGA), the Scheme Advisory Board (SAB), His Majesty's Treasury (HMT), the Department for Work and Pensions (DWP), and The Pensions Ombudsman (TPO). Topics include changes to the SCAPE discount rate, the Pensions Dashboard Programme, and updates on the McCloud remedy.

Glossary, Actions Tracker, and Forward Programme of Work

Members will have the opportunity to consider and comment on the Board's Actions Tracker and Programme of Work. This includes reviewing progress on recommendations from previous meetings and noting any changes to the forward programme.