“We remain concerned that some valid implementation issues raised by knowledgeable and experienced members of the LGPS community have been passed over, meaning that the implementation carries risks to the success of both the LGPS and the outcomes for the UK. Key to these concerns is the deadline of 31 March 2026, which the government has confirmed remains in place. As fed back to government throughout the process, including in a letter from the Scheme Advisory Board on 12 May, this deadline is unnecessarily precipitous and raises the risk of rushed decisions, sub-optimal implementation and increased costs.
“However, it is pleasing to receive some certainty of future direction so that funds and pools can act in confidence. Officers and committees should now progress work to meet the new requirements in the best interests of their funds and stakeholders. Pool oversight will be essential in the short-term for funds, as the pools are now set to provide a vast range of services that will be incredibly impactful on returns. This will be especially important during the build – ensuring that pools develop this expansive range of new services to a sufficient level, while still delivering on the “day job” of managing funds’ current assets well. Funds should consider whether the current arrangements need strengthening to reflect the larger role pools will play.
“Plans around local investment will also need to be a priority. A defined strategy and policy here are essential for funds so that they can achieve their goals and ambitions here.
“The response confirms that the governance proposals will largely proceed as originally outlined in the consultation, with more detail to follow. The small tweaks that have been set out suggest that government will be less prescriptive in how administering authorities constitute their pension committees, and pool companies their boards.
“The role of the independent advisor will now be a non-voting role, taking account consultation responses in relation to the requirements of democratic accountability. Whilst the individual will require pensions qualifications and experience these will not be LGPS specific. Biennial governance reviews have become triennial, but there is still much detail outstanding on how they will work in practice.”
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