Investment pooling - LGPS Central
Investment Pooling within the Local Government Pension Scheme (LGPS) is designed to bring pension funds together to invest collectively, while each fund keeps local control over its funding decisions, member benefits, and relationships with employers.
Under pooling, individual LGPS funds remain responsible for setting their own investment strategies and funding objectives. Funds are then invested through an investment pool, allowing them to benefit from greater scale, stronger governance, enhanced investment capability and improved value for money than could be achieved individually.
The LGPS Central Pool
LGPS Central is an LGPS‑owned investment pool that helps manage and invest money for its member funds. After recent Government changes called Fit for the Future, LGPS Central now looks after about £100 billion, representing 14 pension funds, more than 6,000 employers, and around 1.7 million members.
The pool operates through LGPS Central Limited, a company regulated by the Financial Conduct Authority (FCA). LGPS Central Limited works with its Partner Funds to deliver their investment strategies.
From April 2026, LGPS Central brings together 14 pension funds from across England into a single partnership. These funds are Cheshire, Derbyshire, Gloucestershire, Hampshire, Leicestershire, Norfolk, Nottinghamshire, Oxfordshire, Shropshire, Staffordshire, Suffolk, West Midlands, Wiltshire and Worcestershire.
This new partnership brings together funds that were previously part of other pooling arrangements and reflects how much the funds have worked together to meet the Government’s deadlines for these changes.
Governance and How the Pool Operates
Good governance is at the heart of how LGPS Central operates. The pool has reviewed its governance arrangements and updated its legal processes to meet the requirements of Fit for the Future. This includes moving all Partner Funds to new management agreements.
While LGPS Central has met the Government’s Fit for the Future implementation requirements, the pool is operating under transitional governance arrangements.
These arrangements will stay in place until the final governance model is developed and agreed together with LGPS Central. The new model will be introduced in Autumn 2026, making sure that the governance is strong, fair, and takes on board partner fund feedback before it becomes permanent.
At the same time, LGPS Central is working step by step to move assets and services from old providers in a careful and sensible way, making sure risks are managed and money is well spent.
Looking Ahead
Pooling is not just a one-off event but an ongoing process. As a manager owned by LGPS, LGPS Central keeps working to bring Partner Funds together so they can invest as a group for everyone involved. By combining size, knowledge and strong oversight, LGPS Central aims to deliver lasting value for employers and members throughout the partnership.
What it means to members
For scheme members and employers, investment pooling:
- does not change pension benefits or administration
- does not affect the security of the LGPS
Your pension fund continues to act in your best interests, working with LGPS Central to invest assets responsibly and sustainably over the long term.
