Pension Schemes Bill becomes the Pension Schemes Act
Author: LAPF Investments | Published: May 1, 2026
After months of discussion and ping pong between the Commons and the Lords, the Pension Schemes Bill has passed both houses and received Royal Assent.
It comes after peers in the House of Lords agreed to a final round of concessions on the controversial mandation reserve power.
The amendment means the government would have to publish a report identifying barriers to UK and private markets investment before implementing the reserve power to require specific asset allocations, and set out the steps it has taken to ‘address any such barriers’.
It marked the fourth version of the mandation clause put before parliament, with the power having become the final sticking point on the bill.
For the LGPS, the passing of the Pension Schemes Bill marks the statutory implementation of Fit for the Future – putting into law a lot of the changes that have begun to take shape, including the mandatory pooling of assets and pooling consolidation.
It is also going to lead to governance reforms, with administering authorities required to publish governance, training and administration strategies, appoint a senior LGPS officer, and undergo triennial independent capability reviews, all targeted to be in place for the 2026/27 scheme year.
