Harrow Council's Pension Board convened on Thursday, July 30, 2026, to discuss significant reforms impacting the Local Government Pension Scheme (LGPS) and to appoint an Independent Person.
The meeting, chaired by Richard Harbord, focused on the Fit for the Future
reforms, a national initiative stemming from the Pension Schemes Act, which became law on April 29, 2026, with regulations taking effect on June 30, 2026. These reforms mandate Harrow to appoint an Independent Person
and an LGPS senior officer
by December 31, 2026. Furthermore, the council must produce an investment strategy, including local investment preferences, by March 31, 2027.
The Fit for the Future
reforms introduce new roles and responsibilities. The Independent Person
is expected to undertake more work, including collaboration with the chair of the pension board, and is anticipated to incur higher costs than the current two advisors. The appointment process for both the Independent Person
and the LGPS senior officer
involves the 151 officer, the monitoring officer, and the head of HR. A competition will be held to fill the Independent Person
role, drawing from the fund's existing independent advisors.
The Pension Board's remit is to scrutinise and ensure that officers and the committee implement these appointments and strategies in compliance with regulations and pensions law. Board members are tasked with raising any concerns within the forum or externally and reporting potential breaches of law to the Pensions Regulator.
The development of the investment strategy, due by March 31, 2027, will incorporate local investment preferences.
The definition of local
is flexible, with options in London including the wider London area plus Buckinghamshire, or focusing solely on Harrow itself. This consideration is a direct requirement of the Fit for the Future
reforms.
The anticipated timeline for the investment strategy involves a training workshop for the Pension Fund Committee in November, followed by the strategy statement being presented for approval at the same November meeting. It will then be endorsed and sent out for consultation with employers.
These reforms may lead to increased operational costs for Harrow Council due to the new officer appointments. However, the pooling of investments through the London Collective Investment Vehicle (LCIV) has already yielded savings in investment manager fees, boosting net returns. The financial health of the Pension Fund is crucial, as it directly influences employer contributions and, consequently, the resources available for the Council's broader priorities.
Gerald Balabanoff was appointed Vice-Chair of the Pension Board for the 2026-27 municipal year.
For further details, refer to the Supplemental Agenda and the Public reports pack.
