Local Government Pension Scheme Rule Changes June 2026: What 6 Million Members Need to Know

What the New Regulations Change

The Local Government Pension Scheme (LGPS) Regulations 2026, laid before Parliament on 21 May 2026, make three principal changes to how the scheme operates.

First, pooling of assets becomes a legal requirement for the first time. LGPS funds have been pooling assets voluntarily since 2015, and 80% of assets are already managed through pooled arrangements. The new regulations require all funds to pool, removing the option to hold assets outside the pool structure.

Second, new requirements are introduced for how pension funds publish investment strategies. Funds must set out their investment approach in more detail and in a standardised format, making it easier for members and oversight bodies to assess whether investment decisions are in line with the fund's stated objectives.

Third, new governance roles are introduced. Funds must fill specified governance positions to ensure oversight standards are consistent across all 86 administering authorities in England and Wales.

What Does Not Change for Members

The regulations change how the LGPS invests its assets. They do not change the terms of the pension itself. Member contribution rates, the accrual rate at which pension builds up, the retirement age, and the formula for calculating pension payments are all unchanged by these regulations. The benefit that LGPS members will receive at retirement is determined by their service record and salary, not by the investment performance of the pool.

The LGPS is a defined benefit scheme. Members receive a pension based on their career average pay and length of service, not on the value of an investment pot. The investment pooling reforms are intended to generate better returns on the scheme's assets and reduce management costs, which benefits the scheme's long-term sustainability, but they do not directly alter the pension entitlement of individual members.

Who Is in the LGPS

The LGPS covers employees of local councils, fire and rescue services, police staff (not officers), and a range of other public bodies in England and Wales. Scotland operates its own Local Government Pension Scheme separately. Northern Ireland has a separate Local Government Officers' Superannuation Committee scheme.

Membership is automatic for eligible employees working more than the minimum hours threshold. Members can opt out but will lose the employer contribution. Employer contributions to the LGPS are paid by the employing authority from public funds.

The Investment Pooling Background

The government launched the LGPS pooling programme in 2015. Eight investment pools were established across England and Wales, each covering a group of administering authorities. The pools allow individual LGPS funds to invest in asset classes and at scale that would not be accessible to smaller funds investing independently.

By 2026, pooling has already achieved cost savings of £870 million compared with the pre-pooling baseline, according to MHCLG figures. The new regulations are intended to accelerate progress by removing the option to hold assets outside the pool and by standardising governance across all funds.

Does the LGPS pooling change affect my pension amount?

No. The LGPS is a defined benefit scheme. The pension paid at retirement is calculated from career average pay and years of service, not from the investment performance of the fund's assets. The pooling regulations change how the fund's assets are managed and invested, but they do not alter the formula used to calculate member benefits. Members can check their projected pension entitlement through their administering authority's member portal or by requesting a pension statement.

Which local government employees are in the LGPS?

The LGPS in England and Wales covers employees of district councils, county councils, London boroughs, metropolitan councils, unitary authorities, combined authorities, fire and rescue services, police staff (not police officers, who have a separate scheme), and various other designated public bodies. New employees are automatically enrolled unless they opt out. Part-time employees are eligible on the same basis as full-time employees.

When do the new LGPS regulations come into force?

The regulations come into force on 30 June 2026. They were laid before Parliament on 21 May 2026 under the affirmative resolution procedure. The regulations implement the Fit for the Future reforms following a consultation launched in November 2025. Implementation timescales for individual funds have been adjusted from the original proposal to reflect what is practically achievable, giving funds additional time to transfer assets and fill governance roles.

Is the LGPS the same as the Teachers' Pension Scheme or NHS Pension Scheme?

No. The LGPS, the Teachers' Pension Scheme, the NHS Pension Scheme and the Civil Service pension schemes are all separate public sector defined benefit schemes with different rules, contribution rates and administering bodies. The June 2026 regulations apply specifically to the LGPS in England and Wales only. Teachers, NHS staff and civil servants are in separate schemes that are governed by different legislation.

How do I find out which LGPS pool my employer's fund belongs to?

There are eight LGPS investment pools in England and Wales: ACCESS, Brunel, Border to Coast, LGPS Central, London CIV, Northern LGPS, LGPS South East and Wales Pension Partnership. An administering authority's annual report and accounts identifies which pool it participates in. Members can contact their employer's HR or payroll department to identify which administering authority holds their LGPS pension and which pool that authority belongs to.