05 August 2026
3 min
On 30 July 2026, long awaited guidance for funds affected by Local Government Reorganisation (LGR) was published. It covers the approach to selecting a new administering authority and the deadlines for submitting proposals for a Single Purpose Pensions Authority (SPPA).
When it comes to deciding the future governance structure of the fund, the government has made it clear it sees this as a local decision. This chimes with the overall intent of LGR which, alongside devolution, seeks to move more decision making on local areas to local government.
In our blog on 24 July, we outlined some of the questions funds could start to ask themselves now. The new guidance supports that.
There are 9 areas the government suggests funds consider. These range from looking at the implication of transferring contracts to the ability to participate in an investment pool and minimising disruption to members. We’d also suggest considering the impact on a fund’s existing staff to make sure the fund can complete all the tasks that arise.
When selecting a new AA, it’s clear cyber security is a concern the government is focused on. It appears in two of the areas for consideration that are put forward in the guidance. This adds to the extra weight The Pensions Regulator has placed on this topic – it’s a crucial risk factor for funds to think carefully about.
Stick - A fund may be looking to broadly maintain its current governance structure and appoint one of the new unitary authorities as AA. The clock has already started sticking on making this proposal to government.
For those looking to move quickly, the first deadline is 1 March 2027 so ministers can consider proposals ahead of ratification by the new shadow authorities coming into being from May 2027. For the others the ultimate deadline is 30 September 2027.
Twist - but what about those funds looking at other options?
There's much interest across the LGPS in understanding the implications of the SPPA model. So far, Surrey have adopted this approach, following in the footsteps of South Yorkshire.
For those considering this approach the government has set a deadline of 15 February 2027.
That doesn’t leave much time for delivering on the programme of work. Fortunately, help is at hand, and our team has plenty of experience working on such matters. If your fund is considering becoming a SPPA, or simply keen to explore the pros and cons of different types of governance structure, please get in touch.
Important information
This blog is based upon our understanding of events as at the date of publication. It is a general summary of topical matters and should not be regarded as financial advice. It should not be considered a substitute for professional advice on specific circumstances and objectives. Where this blog refers to legal matters please note that Hymans Robertson LLP is not qualified to provide legal opinion and therefore you may wish to obtain independent legal advice to consider any relevant law and/or regulation. Please read our Terms of Use - Hymans Robertson.
We pride ourselves on being thought leaders and are constantly discussing the many issues facing and shaping our industry. Sign up to find our current thinking on topical issues.
Opens in new window Subscribe
