Wiltshire Pension Fund selects LGPS Central as preferred pooling partner

Wiltshire Pension Fund has selected LGPS Central as its preferred pooling partner after being told by UK ministers to find a new home to pool its assets.

Earlier this year, UK ministers gave the green light to six out of eight UK local authority pension investment pools’ proposals for meeting new minimum standards set out by the government, rejecting plans put forward by Brunel Pension Partnership and ACCESS.

Key proposals included the requirement for all Local Government Pension Scheme (LGPS) assets to be pooled by 31 March 2026, and for local authority pension funds to take investment strategy advice from their respective investment pools.

In the case of the Wiltshire Pension Fund, the government stated that the proposed approach of its current pooling partner, Brunel, did not align with its long-term vision for the LGPS. The ACCESS pool received a similar letter.

As a result, Wiltshire – along with 20 other LGPS funds – has been directed to seek a new pooling partner, with a final decision required by 30 September 2025.

In response, the Wiltshire scheme has undertaken a rigorous and forward-looking assessment process, supported by its independent investment advisors, Redington, to determine the most suitable partner to deliver the government’s expectations as well as ensure alignment with the fund’s investment strategy and culture.

Wiltshire said that selecting a new investment pool was a “significant decision”, and engaging in this process as early as possible had allowed it to manage the risk of instability and prioritise key assessment criteria, in order to ensure the best possible outcome with employers’ and members’ best interests in mind.

Jennifer Devine, head of Wiltshire Pension Fund, said: “During our selection process, the openness demonstrated by the senior leadership team at LGPS Central gave us a high level of conviction that our voice would be heard, providing the best prospect of being able to collaborate and help drive positive outcomes in the future.

“We felt that the culture at LGPS Central was something that we wanted to be a part of, and we are excited about the next stage of the process.”

The fund presented its preferred pooling partner to its pensions committee on 24 July as LGPS Central. The decision to admit a new fund rests with the LGPS Central pool’s shareholders.

Speaking at Pensions UK’s (formerly Pensions and Lifetime Savings Association) local authority conference in June, Devine said that “orphaned” funds were now “very reliant” on all other funds to support them.

She said at the time: “We can go out there and we can talk to the pools, but a pool might turn around and say ‘we don’t want you, you don’t suit us’. Or they might say ‘we do want you’ and then the partner funds, which are the ones making the decisions, might turn out and say they don’t want us.

“We are really relying on a lot of goodwill and sympathy from other people in the LGPS to take us orphans in and give us a new home.”

George Simmonds, chair of the Wiltshire Pension Fund committee, added that it had approached the task of identifying a new investment pool with “considerable diligence”.

“In this time of change, we have been intentional in our pursuit of a partner that not only demonstrates a strong customer focus but also aligns culturally with the values of the Wiltshire Pension Fund,” he said.

“The committee is confident that a move to LGPS Central would fulfil these aspirations and support us in meeting the government’s pooling requirements,” he added.

Richard Law-Deeks, chief executive officer of LGPS Central, noted: “We welcome the opportunity to work with all prospective partners in building a model which works for all, and secures the future of LGPS investments, recognising the key role we play in supporting the payment of pension benefits. We’re pleased that, following Wiltshire Pension Fund’s rigorous due diligence, we have emerged as their preferred pool.”

He said this was a “positive step” that enables the pool to work with existing partner funds, in line with the pool’s governance framework, to consider the appropriate next steps on a potential new fund joining LGPS Central.

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