LGPS consolidation will reduce member involvement in investment decisions, say TUC
Author: LAPF Investments | Published: March 6, 2026
Consolidation currently being seen in the LGPS “will reduce member involvement in investment”, according to a new report by the TUC.
It comes as part of a wider report on pension scheme governance put together by the trade union as part of its Pensions Conference, which took place earlier this week.
Focusing on reforms that will see funds delegate investment implementation and asset management to their pool by March 2026, it said decisions like which managers to hire, how mandates are run, and many ‘active vs passive’ calls will shift from the pensions committee and the local pension board to the pool operator.
It added that the government hasn’t mandated a standard way for pools in the LGPS to include member representatives in their own governance and, as a result, members’ direct influence over implementation decisions is likely to fall unless pools choose to give them a voice.
The report did, however, acknowledge that some pools do have member representatives directly on the board and some use non-voting observers or advisory roles to ensure member voices are heard.
Reflecting on the report as a whole, the TUC’s general secretary Paul Nowak said: “Pension schemes deliver better outcomes for members – and ultimately a better quality of life in retirement – when those members have a say in how they are run.
“As the government looks to move to a system of fewer, bigger pension schemes, ministers should look to Australia and Canada to see how member representation can help to ensure those bigger schemes deliver better results.
“All workers deserve to retire in dignity. It is vital that pensions are governed fairly.”
