The aims of the Fund
to keep the contribution rate as constant as possible at reasonable cost to the taxpayers
to manage employers’ liabilities effectively
to ensure that sufficient resources are available to meet all liabilities as they fall due
to maximise the returns from investments within reasonable risk parameters.
The purpose of the Fund
is to receive monies in respect of contributions, transfer values and investment income
is to pay out monies in respect of scheme benefits, transfer values, costs, charges and expenses as defined in the relevant government regulations.
Actuarial valuations
The Fund’s actuary Barnet Waddingham carries out a valuation of the Fund every 3 years in line with Local Government Pension Scheme (LGPS) regulations. The purpose of the valuation is to review the financial position of the Fund and to set employer contribution rates.
The actuary estimates the amount of assets that will be required to meet the benefit payments owed to members as they fall due. Separate calculations are carried out to identify the expected cost of members’ benefits in respect of scheme membership completed before the valuation date (past service) and that which is expected to be completed after the valuation date (future service).
As part of this exercise the actuary makes forward-looking assumptions about:
rates of inflation
salary increases
longevity
investment returns
Recent actuarial valuation reports of the Fund are available here:
Each financial year the actuary makes a statement [PDF] which forms part of the Fund's annual report.
Sustainability
Discover the work Barnet Waddingham's internal sustainability groups have put in to improving its environmental impacts, and also how their consultants are working with clients to showcase how they too can be making changes to help the world around us, highlighting to them both climate risks and opportunities: Sustainability Report 2023
Investment pooling
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.