The Pension Schemes Bill reached the committee stage in the House of Lords this week, following a full debate on its key principles at second reading on 18 December.
During the initial committee debates, members of the upper house discussed several clauses relating to the Local Government Pension Scheme (LGPS). Amendments were proposed to clarify the rationale behind the secretary of state’s power to direct scheme managers to participate in, or withdraw from, asset pools, as well as the government’s expectations around transitional arrangements.
Peers also examined how scheme managers and strategic authorities are expected to work together in practice.
In a separate debate, concerns were raised that, as currently drafted, the Bill prioritises employers over members in proposals to extract surplus from well-funded defined benefit (DB) schemes.
The most recent discussion focused on clause 40, which introduces a £25bn asset threshold for main-scale default arrangements in defined contribution (DC) workplace schemes. The measure is intended to accelerate consolidation into fewer, larger funds, but peers warned that forcing schemes to grow or merge could risk stifling innovation.
Value for Money
Earlier this month, the Pensions Regulator (TPR), the Department for Work and Pensions (DWP) and the Financial Conduct Authority (FCA) published a joint consultation setting out proposals for a revised Value For Money (VFM) framework for DC schemes.
Building on feedback to last year’s consultation, the proposals introduce forward-looking metrics showing the returns and risks savers can expect over the next 10 years, alongside an updated set of backward-looking metrics.
The regulators also propose expanding the VFM rating system from three to four categories. Under the revised approach, the existing green rating would be split into light green and dark green, alongside amber and red.
TPR has urged trustees to respond to the consultation, noting that trustees will play a central role in driving improvements in value and in challenging advisers and service providers to deliver better outcomes for savers. The consultation closes on 8 March.
LGPS consolidation
Local Pensions Partnership Investments (LPPI) is seeking to recruit 18 new staff, with a focus on candidates from Brunel Pension Partnership, as it continues onboarding new partner funds.
The move comes as LPPI plans to establish a new office in Bristol, where Brunel is currently based. LPPI is working towards expanding to nine partner funds, following the signing of a memorandum of understanding in November by Devon, Avon, Dorset, Somerset, Cornwall, and the Environment Agency Pension Fund.
The exact location of the new office is still being finalised, LPPI said, adding that it will complement its existing offices in London and Preston and help maintain a local presence in each partner fund’s region.
Last year, LPPI emerged as the leading contender to take over Brunel Pension Partnership’s investment infrastructure. Brunel employs around 75 staff and manages seven equity pooled funds, as well as passive equity and private markets, for 10 local authority pension fund clients in the west of England.
Items to note:
- The Impact Investor Forum 2026 is taking place on 14 May at The Conduit London.
Pamela Kokoszka
UK Correspondent
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