Explanatory note

This Order gives effect to proposals made by Surrey County Council, in its capacity as the administering authority of the Surrey Pension Fund and in the context of the local government reorganisation brought about by the Surrey (Structural Changes) Order 2026 (S.I. 2026/264), for the transfer of its pensions functions to a new body, the Surrey Pensions Authority.

Article 3 of this Order establishes the Surrey Pensions Authority as a “residuary body” under section 17 of the Local Government and Public Involvement in Health Act 2007 (c. 28). The Schedule sets out the manner in which it is constituted, provides for the appointment and replacement of members, and deals with ancillary matters such as finance and administration.

Article 4 provides for the transfer of Surrey County Council’s pensions functions to the Surrey Pensions Authority from 1st April 2027, and article 6 makes transitional provision for the continuity of the exercise of the transferred functions. Article 7 provides that this transfer of functions is to be treated as a “relevant transfer” within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), which makes provision for the treatment of contracts of employment, employees and related matters in the event of a relevant transfer. Article 8 makes consequential amendments to ensure that the Surrey Pensions Authority is treated appropriately for the purposes of the Redundancy Payments (Continuity of Employment in Local Government, etc.) (Modification) Order 1999 (S.I. 1999/2277) and the Local Government Pension Scheme Regulations 2013 (S.I. 2013/2356).

Article 5 provides for the reimbursement of the net expenditure of the new body for any financial year beginning on or after 1st April 2027 by East Surrey Council and West Surrey Council.

A full regulatory impact assessment has not been prepared as this instrument will have no, or no significant impact on the costs of business and the voluntary sector. The impact on the public sector is the creation of a new public sector body for the administration of the Local Government Pension Scheme in Surrey.