The Surrey Local Pension Board met to discuss the Surrey Pension Fund's performance, administration, and risks, with a particular focus on the impact of local government reorganisation and the government's review of the Local Government Pension Scheme (LGPS). The board reviewed the fund's investment strategy, service delivery, and internal audit reports, and also discussed the ongoing issues with the implementation of the MySurrey ¹ system.

Local Government Reorganisation and the Surrey Pension Fund

The board discussed the implications of local government reorganisation, noting that Surrey County Council as the administering authority for the pension fund would cease to exist. The current proposal involves the creation of two unitary authorities, with options for the pension fund to be administered by one of the new unitaries, a strategic mayor authority, or an independent body.

Neil Mason, Director of Pensions, LGPS Senior Officer, clarified that while the preferred option is for an independent body to secure the fiduciary duty of the pension fund, the situation is still under exploration. He also addressed concerns about the resources available to support the fund during this transition:

We've asked for Casey's opinion regarding the options for the pension firm and the structures that it could take out of local government reorganization. So where it could actually reside due to the current legislative permissions and how they can be interpreted for where the administrative authority could reside as a result of devolution.

Lisa Fogerty-Scott, Member Representative, emphasised the need for clear communication with employees affected by the reorganisation. The board agreed to make this a standing item for future meetings.

Investment Performance and Border to Coast Pensions Partnership

The board discussed the relative underperformance of the fund against its benchmark, particularly concerning the Global Alpha Fund managed by Border to Coast Pensions Partnership².

Lloyd Whitworth, Head of Investments and Governance, explained that the fund's asset allocation had added value, but the actual management performance within the asset allocation had not met its benchmark. He noted that changes had been made to move money to the Elgin Future World Fund, a passive fund.

Trevor Willington, Member Representative, questioned how this performance aligned with the government's approach to having fewer investment arms, and Neil Mason, Director of Pensions, LGPS Senior Officer, responded that Border to Coast had met the stated objectives of the government.

William McKee, Member Representative, suggested that the risk register should specifically address the impact of American fiscal policy on investment allocations, but Neil Mason, Director of Pensions, LGPS Senior Officer, felt that this risk was adequately captured in the existing register.

Service Delivery and Performance

The board reviewed the service delivery overview, noting strong and consistent performance over the last six to seven months. Tom Lewis, Head of Pensions – Customer Operations, highlighted that the team had been hitting 100% in some areas, such as ill health and death notifications, transfers, and refunds. He also mentioned the increasing popularity of online retirements, with an average processing time of four days.

The board discussed the Guaranteed Minimum Pension (GMP) project, with Tom Lewis, Head of Pensions – Customer Operations, summarising that 376 members were included in the bulk piece of work, with a total cost of £686,000. He acknowledged the impact on some members whose pensions were reduced but emphasised that the team had followed guidance and not sought to recover overpayments.

Trevor Willington, Member Representative, asked about the range of pension reductions, and Tom Lewis, Head of Pensions – Customer Operations, responded that the highest reduction was just over £2,000, and the lowest was £100, below which no changes were made.

Risk Management and MySurrey Update

The board considered the risk register update, with Colette Hollands, Senior Pensions Programme Manager, highlighting the top four risks: devolution/local government reorganisation, the impact of the government's review of the LGPS, MySurrey issues, and investment returns due to market volatility.

Tom Lewis, Head of Pensions – Customer Operations, provided an update on the MySurrey system, stating that the membership and benefits side was under control, but work remained on the finance side. He noted that the county council had committed resources to help understand the requirements for an accounts and banking control system.

Trevor Willington, Member Representative, questioned how the accounts were signed off with an unqualified opinion given the ongoing issues with MySurrey, and Tom Lewis, Head of Pensions – Customer Operations, explained that workarounds were used to provide assurance about the accounts' accuracy.

Internal Audit

Liam Pippard, Principal Auditor, presented the internal audit progress report, noting that the audit of pension fund investments received a Reasonable Assurance rating. He also mentioned that a new full review of banking controls would be undertaken, given the ongoing issues with MySurrey.

Developments in the LGPS

Neil Mason, Director of Pensions, LGPS Senior Officer, highlighted several developments in the LGPS, including the decision to separate the council's audit from the pension fund audit, a note from central government regarding the use of changing contributions into valuation, and the requirement for pension dashboards. He also mentioned the LGPS Governance Conference in Cardiff in January 2026.