In November 2024 the government launched the consultation ‘Local Government Pension Scheme (England and Wales): Fit for the future’ on proposals to reform the LGPS covering proposals to:
- reform asset pooling
- boost investment in local areas and regions across the UK
- strengthen the governance of LGPS Administering Authorities and asset pools
Following this, the government published its consultation response in May 2025, confirming that it intends to proceed with the majority of the proposals. The proposals include changes to:
- asset pooling
- governance arrangements
- local investment requirements
The detailed implementation will be delivered through legislation and statutory guidance.
A subsequent technical consultation ran between 20 November 2025 and 2 January 2026 on 2 draft statutory instruments:
- the LGPS (Pooling, Management and Investment of Funds) Regulations 2026
- the LGPS (Amendment) Regulations 2026
These draft regulations are designed to give effect to the policy proposals set out in the government’s response.
A key element of the proposed reforms is the acceleration of asset pooling for LGPS funds. Under the proposals Derbyshire Pension Fund will be required to:
- delegate the implementation of its investment strategy to its asset pool, LGPS Central
- take its principal investment advice from the pool
- transfer all assets into the management of the pool
The government has set a target date of 31 March 2026 for Funds to comply with these requirements and has included powers of direction with respect to LGPS asset pooling in the draft legislation. The target date is dependent on the finalisation of the Pension Schemes Bill, which is currently working its way through the parliamentary process.
Derbyshire County Council’s Pensions and Investments Committee noted the Fund’s response to the technical consultation and the Fund’s approach to complying with the proposals at its meeting on 21 January 2026. You can find the committee's most up-to-date agendas, non-confidential papers and minutes on the Derbyshire Democracy website.
Statutory guidance will set out further details on the implementation of the proposals. We will provide a further update once the legislation and the guidance is finalised.