How TPR regulates Local Government Pension Scheme funds
FOI reference - FOI - 409
Date - 2 September 2025
Request
I refer you to the attached article, which describes a lamentable lack of regulation of the performance of these pension funds.
Under Freedom of Information, I would like to know in detail how you regulate these pension funds. If you are not regulating them then you should.
Response
We understand your request to be for information on how The Pensions Regulator (TPR) regulates Local Government Pension Scheme funds. We can confirm that we hold relevant information, however this is already available in several publications that TPR has made publicly accessible. In accordance with the FoIA, we are applying the exemption under Section 21, as the information is already in the public domain and readily accessible via our website. Therefore, rather than providing copies, we are directing you to these published resources.
Our Remit
TPR is the UK regulator of workplace pension schemes. We are responsible for regulating defined benefit pension schemes, master trusts and broader defined contribution schemes and public service pension schemes.
Our role is to ensure that employers comply with their automatic enrolment duties and that pension schemes are run properly and in the best interests of members.
For clarity, TPR regulates the governance and administration of public service pension schemes, including local government pension schemes, in the UK. There are three local government pension schemes in the UK: one for England and Wales, one for Scotland and one in Northern Ireland.
The local government pension schemes for England and Wales and Scotland are locally managed and administered by specified administering authorities in their role under scheme regulations (the scheme rules) as scheme managers. Each administering authority is responsible for managing and administering the scheme in relation to any person for which it is the appropriate administering authority under the relevant scheme regulations. Each administering authority is responsible for maintaining its own fund for the pension scheme and formulating an investment strategy in respect of their respective fund. The local government pension scheme for Northern Ireland is managed and administered by the Northern Ireland Local Government Officers' Superannuation Committee (NILGOSC) and they are responsible for maintaining the pension fund and formulating an investment strategy for that scheme.
TPR does not have a specific remit in respect of the performance of pension funds, including any related to local government pension schemes.
Below I have signposted to multiple publications which explain our approach to regulating pension funds:
Public service pension schemes – The Roles and Responsibilities section of this guidance provides and overview of who does what and TPR’s remit in governance and administration
Scheme management enforcement policy - Our approach to enforcement relating to defined benefit, defined contribution, mixed benefit and public service pension schemes.
TPR general (single) code of practice - The code sets out our expectations of the conduct and practice that governing bodies should meet to comply with their duties in pensions legislation.
Duty to provide advice and guidance
To assist you in understanding the wider framework that applies to the LGPS, we signpost the following:
• The Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016, which include provisions:
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- requiring administering authorities to formulate an investment strategy which must be in accordance with Secretary of State guidance (regulation 7)
- enabling the Secretary of State to direct an administering authority if the Secretary of State is satisfied that the authority is failing to act in accordance with guidance issued under regulation 7(1).
• LGPS valuations – The LGPS undergoes a triennial actuarial valuation, which is taking place in 2025.
• Pensions Bill 2025 – This bill is currently before Parliament and includes provision relating to the Local Government Pension Scheme for England and Wales, including to do with asset pool companies and associated governance matters.
• Scheme Advisory Board (SAB) – Established by regulation 110 of the Local Government Pension Scheme Regulations 2013, the SAB’s statutory role includes advising the Secretary of State on changes to the scheme and advising administering authorities and local pension boards on effective and efficient administration. For recent context, you may find helpful the Board summary statement on the management of the LGPS and the statutory role of the SAB.