Current issues in the LGPS - August 2026

This month’s Current Issues in the LGPS considers a broad range of developments affecting LGPS funds. A key focus is the Independent Governance Review (IGR), which is now a statutory requirement for English and Welsh LGPS funds, with the first review due by 31 March 2028.

As the LGPS governance landscape continues to evolve, now is the time for funds to understand their current position and prepare with confidence. Our governance team can provide independent support and challenge ahead of your formal assessment, working with officers to review existing arrangements against government guidance and identify where further preparation may be helpful.

Read selected highlights from the latest edition below, or download the full publication.

• Reform and governance in focus - We consider a busy period for the LGPS, with devolution, local government reorganisation and Fit for the Future reforms creating important planning considerations for funds. Governance remains a central theme, particularly with the introduction of IGRs and the need for funds to evidence and strengthen their approach ahead of future deadlines.
• Funding and investment priorities - We explore key funding and investment priorities, including 2025 valuation outcomes, investment governance changes, human rights risks and practical preparation for pooling. Strong funding positions remain positive, but funds will need to understand what these mean for employer contributions, accounting impacts and wider stakeholder expectations.
• Policy updates and emerging risks - The wider policy landscape continues to move quickly, with updates on early retirement factors, longevity trends, AI accountability, pensions dashboards, climate-related risks and upcoming consultations. Together, these developments point to an increasingly complex environment where LGPS funds will need to stay proactive, well-evidenced and ready for change.
• Investment markets and responsible ownership - We look at investment-related developments, including human rights risk, the investment governance implications of the Pension Schemes Act 2026, recent market movements and the continued impact of Fit for the Future reforms. We also cover wider actuarial and funding topics, including 2025 local valuation outcomes, new early retirement factors, pension accounting disclosures and longevity trends.

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If you'd like to discuss any of these developments and what they could mean for your fund, please get in touch.

This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice (including for legal, investment or tax advice) on specific circumstances. HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party. Hymans Robertson LLP is a limited liability partnership registered in England and Wales with registered number OC310282. Authorised and regulated by the Financial Conduct Authority and licensed by the Institute and Faculty of Actuaries for a range of investment business activities.  © Hymans Robertson LLP 2026. All rights reserved.