Local Government Pension Scheme (LGPS) pools have onboarded new partner funds following the 1 April implementation date for the government’s ‘Fit for the Future’ reforms.

Under the Fit for the Future reforms, the number of LGPS pools will be reduced from eight to six after Brunel Pension Partnership and Access Pool were told their plans did not meet the government’s vision for the future of the LGPS.

LGPS Central said it has successfully met the implementation date and had onboarded six new partner funds from both the Brunel and Access pools.

It has also completed a full governance review, embedded its target operating model, and updated its legal framework to reflect Fit for the Future, including the transition of all partner funds to fiduciary management agreements.

Advisory and client portfolio management functions have also been established, with LGPS Central working with partner funds to support the implementation of their investment strategies.

A phased delivery plan is now in effect across the pool, and it is continuing to work with the Isle of Wight Council Pension Fund as it moves towards participation in the pool.

Among the partner funds to have joined LGPS Central were Hampshire Pension Fund, Norfolk Pension Fund, and Wiltshire Pension Fund.

“Today marks a significant milestone for LGPS Central as a pool and company as well as the LGPS more broadly,” commented LGPS Central CEO, Richard Law-Deeks.

“We have successfully delivered the launch of Fit for the Future, including bringing new partner funds into the pool and establishing our enhanced investment and advisory capabilities from day one.

“This has been a huge collective effort across our partner funds and the company, demonstrating what can be achieved when we work together at scale.

“I would particularly like to thank the officers and the Partner Fund Support Office, who have worked tirelessly and collaboratively to support one another, and in particular to support funds transitioning from pools that are winding up at pace and under significant pressure.”

Meanwhile, Local Pensions Partnership Investments (LPPI) has also onboarded new partner funds, in what it said marked a major milestone in its Fit for the Future process.

Six new partner funds have already been onboarded, while LPPI said it would be adding more than 20 new partner funds over the next few months, including 15 from Brunel.

It has also launched a ‘refreshed’ brand as it starts life as an enlarged pool, with its assets under management now sitting at an estimated £57bn.

LPPI now manages the assets on behalf of nine LGPS funds: Avon Pension Fund, The Royal County of Berkshire Pension Fund, Cornwall Pension Fund, Devon Pension Fund, Dorset County Pension Fund, Environment Agency Pension Fund, Lancashire County Pension Fund, London Pensions Fund Authority, and Somerset Council Pension Fund.

“Successfully onboarding at pace has been possible because of genuine collaboration between our partner funds – a theme that’s going to define how we move forward together as an enlarged pool,” said LPPI CEO, Chris Rule.

“In the decade since we were founded, we’ve shown the benefits that pooling can deliver. With greater scale, we’re well placed to keep building on that progress.

“We’re now focused on the next phase of partner fund integration, which will ensure that partner funds’ investment strategies and strategic asset allocations are fully aligned with Fit for the Future. Together, let’s do more.”

---