Pools and governance
Sections 1 to 8 of the Pension Schemes Act 2026 contain the core legislative provisions identified in the government's May 2025 response to its local government pension scheme (LGPS) 'fit for the future' consultation.
They provide for and confer regulation-making powers in connection with asset pools/asset pool companies, governance reviews, and investment strategy and co-operation with strategic authorities. They also modify the effect of part of the Procurement Act 2023 for pools.
Why this is important
The reforms will have a significant impact on administering authorities and LGPS pools.
Current position and projected timescales
The Pension Schemes Act received Royal Assent on 29 April 2026. Sections 1 to 8 will come into force on a date to be set by regulations.
However, there was a March 2026 deadline to meet the asset pooling requirements.
You can read about the amendments made to (what are now) sections 1 to 8 of the Act as the Bill made its way through the Parliamentary process in our September 2025 public service pensions newsletter, December 2025 public service pensions newsletter, March 2026 public service pensions newsletter, and April 2026 public service pensions newsletter.
In November 2025, the Ministry of Housing, Communities and Local Government (MHCLG) opened a consultation on two sets of draft regulations to implement the 'Fit for the Future' proposals.
The consultation paper explained that the first set of regulations (The draft LGPS (Pooling, Management and Investment of Funds) Regulations 2026) will implement the pooling and local investment proposals and replace the LGPS (Management and Investment of Funds) Regulations 2016.
They will be supported by revised investment strategy statement guidance and new asset pooling guidance.
The second set of regulations (The draft LGPS (Amendment) Regulations 2026) will implement the governance proposals, making changes to the LGPS Regulations 2013.
They will be supported by governance guidance covering topics such as governance strategies, independent governance reviews, appointment of independent persons and administration strategies.
The government intended that "the final regulations will come into force on 1 April 2026, subject to the timing of the passage of the Pension Schemes Bill through Parliament."
