Author: LAPF Investments | Published: November 21, 2025
The government has launched a six-week consultation on two draft statutory instruments designed to reshape the Local Government Pension Scheme (LGPS).
The reforms, which respond to the government’s “Fit for the Future” proposals, aim to consolidate the scheme’s eight asset pools and strengthen governance across the scheme’s 86 administering authorities.
The draft regulations will require administering authorities to delegate investment strategy implementation to their asset pools, take principal investment advice from pools, and ensure all assets are controlled and managed by relevant asset pools. All changes must be implemented by 1 April 2026.
The consultation is particularly seeking input on the draft Pooling, Management and Investment of Funds Regulations and amended Governance Regulations.
As part of this, it’s looking for views on the implementation timescales, the practical considerations, and whether the regulations will effectively deliver the policy proposals.
Other key areas under consultation include whether the 21-day asset transfer period is workable, if deadlines for publishing investment strategies are realistic, and whether governance review cycles aligned with triennial valuations are appropriate.
Additionally, the consultation is inviting feedback on any gaps in the regulations and potential impacts on protected groups.
Responses are due by 2 January 2026, with the government inviting input from administering authorities, asset pools, scheme members, employers, and industry advisors.
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