Four local government pension schemes (LGPS) members of investment pool ACCESS have chosen LGPS Central as their preferred pooling partner, after being told to find a new home following the UK government’s ‘Fit for the Future’ consultation.
Having undertaken a comprehensive review to determine a suitable future pooling partner, Hampshire, Isle of Wight, Norfolk, and Suffolk have formally declared that they wish the local authority pension funds to join LGPS Central.
They said that LGPS Central has “effectively demonstrated its ability to meet the government’s ‘Fit for the Future’ agenda” and deliver strong outcomes for scheme members, employers, and stakeholders”, it was announced.
The move follows the government’s ‘Fit for the Future’ consultation, which laid out a timeline and future requirements for LGPS funds.
In April, UK ministers gave the green light to six out of eight UK local authority pension investment pools’ proposals for meeting new minimum standards set out by the government, rejecting plans put forward by Brunel Pension Partnership and ACCESS.
Key proposals included the requirement for all LGPS assets to be pooled by 31 March 2026, and for local authority pension funds to take investment strategy advice from their respective investment pools.
This means that 21 LGPS funds will need to find new pooling partners, with a final decision required by 30 September 2025.
Last week, seven of ACCESS pool partner funds – Cambridgeshire, East Sussex, Essex, Hertfordshire, Kent, Northamptonshire and West Sussex – signalled their intent to join investment pool Border to Coast Pensions Partnership.
With today’s announcement, all of the ACCESS partner funds have now identified their preferred pooling partner.
At the end of last month, Wiltshire Pension Fund became the first of the 21 ‘orphaned’ pension funds to publicly announce its preferred pooling partner – LGPS Central – after being told to find a new home for its pooled assets.
None of the other nine Brunel partner funds – which include Avon Pension Fund, Buckinghamshire Council, Cornwall Pension Fund, Devon County Council, Dorset County Pension Fund, Environment Agency Pension Fund, Gloucestershire Pension Fund, Oxfordshire Pension Fund, Somerset Council – have yet announced their intentions.
Greg Peck, chair of the Norfolk Pensions Committee, said: “The openness and positivity displayed by LGPS Central Limited throughout the selection process is a key demonstration of the pool’s values.
“We believe LGPS Central Limited is equipped to deliver the requirements of the government’s ‘Fit for the Future’ agenda and look forward to working collaboratively to deliver positive outcomes for LGPS scheme members.”
Andrew Lowe, section 151 officer of Hampshire County Council, added that among the “many” strengths the fund has identified, the collaborative approach taken by the founding authorities in establishing and operating the pool was particularly impressive.
He said: “As authorities on the Fast-Track Devolution programme, we are pleased to be aligned with our respective local authority partners helping to deliver the government’s ambition for both devolution and pooling.”
Richard Law-Deeks, chief executive officer of LGPS Central, said the pool will work with existing partner funds to consider the next steps.
“We remain committed to building a model that works for all our partners, secures the future of LGPS investments, and delivers for scheme members, employers and stakeholders,” he added.
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