05 February 2026
6 min
There's plenty going on in the LGPS, with consultations, valuations and pooling activity keeping funds busy. Resource planning for a year of change ahead should be time well spent.
Please see excerpts below from our latest edition. Click here to view the full edition.
The LGPS enters the new year from a position of real strength. Funding health, governance standards and broader societal impact all continue to advance meaningfully. However, this success lays bare the risks around the broad and significant reforms which must be implemented in 2026. Against this backdrop, we’ve outlined our thoughts on what funds may prioritise this year across investment, actuarial and governance, administration and projects.
2025 was a year of significant change for the LGPS, marked by major reforms, challenging implementation timescales, and the need for funds to adapt quickly to new governance and investment requirements. The ongoing changes to legislation, as well as the push towards diversification and local investing mean that 2026 will be just as demanding. Our LGPS outlook provides analysis, practical guidance, and expert commentary to help funds and pools navigate this evolving investment landscape.
In December, we published our response to the above consultation for LGPS England and Wales. This includes concerns about the government’s ‘deemed employer’ proposals for implementing Fair Deal (further thoughts here). We understand the introduction of councillors’ pensions remains a priority and the government intends to proceed with this change in the first half of 2026.
The end is now in sight! However, the champagne remains on ice with funds working hard on putting the finishing touches to another busy and successful valuation year. Funds have responsed to employer consultations to wrap up within their final funding strategy statements. And actuaries at Hymans are preparing final valuation reports which now include gender pension gap analysis, and governance audit trails to satisfy growing expectations for full transparency. Lots to do, and everything needs to be completed by 31 March 2025.
As focus increasingly shifts toward the impact of Local Government Reorganisation (LGR), funds are starting to review their overall structure and considering if it’s right for them to make a change. We discussed possible options in our webinar last month.
Latest data from the Office for National Statistics (ONS), analysed by the Continuous Mortality Investigation (CMI), shows that mortality in England & Wales hit another record low in 2025. The data shows that death rates for 2025 were nearly 2% lower than 2024, the previous record low. This is almost 7% lower than the ten-year (2015-2024) average. However, this varies significantly by age and sex. For example, deaths rates for men aged 45-64 remain higher than pre-pandemic levels.
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If you have any questions or would like to discuss the topics covered in this edition, feel free to 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.
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