#2026/22Pension Schemes Act 2026
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This law changes how UK pension schemes are run, invested, assessed, and, in some cases, consolidated. It gives government authorities more power over local government pension funds, including requiring them to use approved asset pool companies, follow investment guidance, publish strategies, undergo governance reviews, and merge funds where needed. It also updates rules for private pension schemes. Trustees may be able to return surplus funds to employers, but only under new safeguards, including actuarial checks and member notifications. For defined contribution schemes, the Act creates a value-for-money framework requiring schemes to publish performance, cost, service, and member satisfaction data, rate themselves, and take action where they are not delivering good outcomes.
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Key Changes
- Gives authorities power to direct how local government pension funds use asset pool companies and manage investments.
- Creates new governance reviews and allows mergers of local government pension funds.
- Introduces value-for-money assessments, ratings, data publication duties, and action plans for defined contribution pension schemes.
Obligations
What this law requires
Local government pension scheme managers must formulate, publish, and keep under review an investment strategy for the funds and assets for which they are responsible.
Local government pension scheme managers must ensure that scheme funds and assets not needed for immediate scheme payments are held by an asset pool company in which the scheme manager participates, subject to any transitional arrangements in scheme regulations.
Local government pension scheme managers must ensure that assets held by an asset pool company are properly managed by that company with a view to implementing the scheme manager’s investment strategy.
Local government pension scheme managers for England and Wales, other than the Environment Agency, must co-operate with an appropriate strategic authority to identify and develop appropriate investment opportunities.
Scheme managers may be required or prohibited by scheme regulations to participate in asset pool companies, including being required to participate in a specified asset pool company or cease participation when directed by the responsible authority.