Pension Funds in England and Wales to Pool Assets

Why this is here: LGPS funds have already pooled 80% of their assets, resulting in roughly £870 million in savings before these new regulations take effect.

The UK government enacted new regulations to reshape how the Local Government Pension Scheme manages investments. These rules, effective June 30, require the roughly £400 billion in LGPS assets to be pooled. Minister Alison McGovern states the changes aim to improve returns for council workers.

Since 2015, LGPS funds have voluntarily combined assets, already achieving about £870 million in savings. The new regulations formalize this practice, establishing consistent standards for all funds. The government adjusted implementation timelines based on feedback received from a November 2025 consultation.

These reforms intend to support investment in local communities and economic growth. However, full implementation relies on funds successfully transferring assets and filling new governance roles. The government anticipates continued work to refine the pension system and improve outcomes for workers and communities.