An update from the Scheme Advisory Board | July 2026
Author: LAPF Investments | Published: September 25, 2026
Your regular update on LGPS governance, regulation, and strategic initiatives
2025 Actuarial Valuations – Board Summary published
The Board has published a report summarising the results of the recently completed local fund valuation exercise. The report is based on data collected from 86 of the 87 LGPS funds in England and Wales (only the closed Environment Agency Fund has been excluded).
It compares the 2025 valuation results to the 2022 valuation results as well as looking at the assumptions used, the investment strategies and the gender pensions gap. The report was kindly prepared for the committee on a “no fee” basis by Barnett Waddingham.
There has been an unprecedented level of interest in the outcome of this valuation round – in the press, in Parliament and beyond. This is partly driven by expectations raised by the welcome further increase in funding levels.
These improved from 107% in 2022 to 122% in 2025 (using local funding bases). The interest was also driven by ongoing concerns about the amount of funding available to deliver local public services, including education.
In launching the report, the Board welcomed the decisions made locally to share the benefits arising from the successful management of LGPS funds, and in particular the decrease in average employer contributions from 21.1% of payroll in 2022 to 16.5% of payroll in 2025.
The Board felt that being able to offer such welcome reductions in contributions was evidence that LGPS remained a cost effective and well managed scheme that delivered real value for its members and participating employers.
In considering the level of reductions possible, funds have had to balance the interests of employers today with their need to protect future members from the uncertain economic and geopolitical times in which we live and which no doubt lie ahead.
The Board is also committed to “telling our story” better and is looking at ways in which we can improve the knowledge base and understanding of the scheme for those participating in the public discourse around the scheme. Publishing this report is one early step in that but we expect to produce more informational material in due course.
Following the release of statutory guidance supporting Fit for the Future, in June 2026 the Board released this statement
The SAB welcomes the publication of the Fit for the Future statutory guidance documents made under the Pension Schemes Act 2026 and the associated changes to the LGPS regulations which take effect from 30 June 2026.
The guidance provides the much needed clarity that administering authorities (AAs) have been waiting for to implement this significant package of reforms. In particular, the Board welcomes the continued focus on governance, reflecting many of the principles set out in its 2021 Good Governance recommendations.
The guidance explains how the government expects the new Independent Person and Senior LGPS Officer roles to operate, both independently and in partnership. These new roles represent a significant development in governance, and the Board recognises the efforts funds are making to get these roles in place.
At the same time, funds will need to review and develop a range of policies and processes to meet the new requirements. The governance guidance sets out the requirements for the new Independent Governance Review (IGR).
The Board recognises that there will be significant interest across the LGPS community in understanding how the first IGRs will operate in practice, including emerging approaches to implementation.
To support this, we are currently exploring the development of a dedicated event that would provide an opportunity to share insights and facilitate discussion on how AAs can effectively approach their first IGR.
The requirement for administering authorities to maintain an Administration Strategy is a welcome development which recognises the importance of pensions administration in delivering good outcomes for members and employers. The Board looks forward to further guidance to support funds in developing and implementing these strategies.
The publication of pooling guidance is also a significant milestone, providing funds with an overdue framework for implementing the government’s chosen asset pooling model. The Board recognises that there were different views as to whether this was the right model and that implementation has presented challenges for some funds.
However, now that this has been set out in legislation the task before us is to make it work as well as possible. And there is still much of the detail to be fleshed out, particularly around oversight and governance, which the Board intends to support funds and pools in achieving successful outcomes.
The updated guidance on Investment Strategy Statements (ISSs) is particularly important as funds prepare to update their statements ahead of the March 2027 deadline.
We recognise that while this is not the timetable the Board would have preferred, the final guidance represents a significant improvement in both content and clarity compared with the versions consulted on over the Christmas period.
The Board has worked extensively throughout the development of the regulations and guidance to ensure MHCLG officials understood the opportunities and practical challenges these reforms present, we are pleased that officials have remained open to engagement and feedback from the sector and believe this collaborative approach has contributed to improvements in the guidance.
We will continue to monitor implementation closely and are ready to provide additional support for AAs. We are already considering what additional guidance, events and support may be helpful in navigating these changes. Please do get in touch with the secretariat team if you have any suggestions.
SAB centralised Code of Transparency data system closing
The centralised data system run by Byhiras in support of the LGPS Code of Transparency will be closed on 28 August 2026 at 5.00pm. This is the system that was developed to accept and store detailed investment cost data from templates approved by the Cost Transparency Initiative.
As well as providing a secure way of storing and reporting this data, it also allowed funds and the Board to check the timeliness of data submission and report late returns.
To replace this system, the Board and the National LGPS Frameworks team have launched a new Cost Transparency and Benchmarking Services framework. This is now live, which allows LGPS clients to procure their preferred services to collate, analyse and benchmark their cost data.
LGPS Peer Support
On 18 May 2026, the Board Secretariat delivered the first LGPS Peer Support Training. Feedback from the 25 new peers across the LGPS, including Pension Committee and Local Pension Board Chairs, alongside senior officers, was positive overall.
The training was considered effective in providing a clear understanding of the peer support role and building confidence in its application. Overall, the feedback will inform the ongoing development of the Peer Support Programme.
In order to be able to offer appropriate choice of peers to the full range of LGPS funds, the secretariat are still looking to recruit more peers, especially from elected members. If you are interested in becoming a peer and supporting other funds across the LGPS, please contact: sabsecretariat@local.gov.uk
We are excited that the first pilot to trial the new offer will be run in Camden and we are expecting to undertake this in September. The secretariat is now starting to plan for a second pilot to build on learning from the initial pilot and would be very interested to hear from any funds willing to participate in that.
Upcoming Board events
Local Pension Board Chairs Forum
On 12 May 2026, Cllr Roger Phillips as Board chair hosted the first event that the Board has put on specifically for LPB chairs (or their deputies). Attendees joined the online event from 58 funds and the agenda focused on capturing LPB members priorities and how they would like to engage with the Board.
The secretariat is now organising the first in what will be a regular series of Local Pension Board Chairs Forums. The first event will be virtual and held on 7 September 2026 from 11.00am – 12.00pm.
The forum will provide support for peer learning and networking and offer a space for open discussion on current issues affecting Local Pension Boards and the wider LGPS governance landscape.
While the event is planned to be run informally, to allow ample discussion between chairs, it will also include an update from the secretariat on topical matters.
Welcome event for new Pension Committee Chairs
The Board has also arranged a welcome event for newly appointed councillors with responsibilities for the LGPS. The event will be hosted online by the Board Chair, Councillor Roger Phillips OBE on 15 September 2026 5.00pm – 6.00pm.
The session will provide an introduction to the LGPS, the role of the Board and the wider governance framework within which funds operate. It will also offer an opportunity for councillors to gain an understanding of key issues currently affecting the Scheme and hear from those working across the LGPS.
The secretariat will also invite the heads of LGA political group offices to join, so that they also get a better appreciation of the work we do and the support offered to elected members with LGPS responsibilities.
SAB Annual Assembly 22 October 2026
Following the success of the inaugural event in October 2025, the Secretariat is pleased to host a second Annual Assembly, exclusively for Pension Committee and Local Pension Board Chairs. This year’s theme is “Leading Together: Shaping the Future of the LGPS.”
The event will bring together Chairs from across the LGPS to:
- Hear updates on key LGPS developments
- Discuss current challenges and emerging issues
- Network and share insights with peers
The event is free to attend and will be held in person only. The event will take place:
- Thursday 22 October 2026
- Bevin Hall, Local Government Association, Smith Square, Westminster, London.
- Registration will open at 10.30am, with the event running from 11.00am to 4.00pm
The Minister for Local Government and Homelessness, Alison McGovern MP, has been invited to provide an update. To register your attendance, please complete a short form that can be found on the events page on the SAB’s website.
The registration form also includes a number of questions about your interests and priorities to help ensure the agenda addresses the issues that matter most to you. We look forward to welcoming you in October.
2026 SAB meetings
Scheme Advisory Board: 23 November
2026 SAB Events
Local Pension Board Forum: 7 September
Welcome event for new Pension Committee Chairs “Meet the SAB”: 5 September
SAB Independence Governance Review Workshop: 1 October
Scheme Advisory Board Annual Assembly: 22 October
2026 Autumn Committee meetings
Responsible Investment Advisory Group (RIAG): 5 October
Investment Committee (IC): 19 October
Compliance Reporting Committee (CRC): 2 November
Cost Management Benefit Design Administration Committee (CMBDA): 9 November
