Pension funds from seven UK local authorities set to align with Border to Coast consortium
The Local Government Pension Scheme (LGPS) in the UK is undergoing a significant transformation, with seven LGPS funds — including Cambridgeshire, East Sussex, and West Sussex — confirming their plans to join the Border to Coast pool. This move will increase the pool's assets under management (AUM) to approximately £110 billion as of August 2025[1].
The decision marks a significant step forward in the government's push for LGPS pooling, aimed at improving efficiency, governance, and investment scale. Other funds currently in discussions with Border to Coast include those from Cambridgeshire, East Sussex, Essex, Hertfordshire, Kent, Northamptonshire, and West Sussex[3].
Border to Coast, the UK's largest local pension manager, currently manages £65bn of assets and has expressed pleasure at the funds' intent to join, stating that they share Border to Coast's values of collaboration and openness[2].
Meanwhile, the remaining four funds that were previously part of the Access pool have chosen LGPS Central as their new pooling partner following a comprehensive review, indicating a trend of selecting strong long-term pooling arrangements across the LGPS landscape[1].
The UK government continues to support LGPS consolidation as part of broader pension reforms, aiming for improved governance, scale, and value for money in public pension schemes[1][4]. The Pension Schemes Bill, introduced in mid-2025, includes specific reforms targeting the LGPS around investment management and governance, aligning with the consolidation efforts[5].
This consolidation aligns with wider national reforms in pensions governance and investment strategy. The government's focus includes ensuring that LGPS investments contribute effectively to the economy while delivering value for members, through strengthened stewardship codes and regulatory oversight[1].
The LGPS Scheme Advisory Board and government continue to engage with funds to secure completion of pension asset pooling by the March 2025 deadline and to explore potential for further mergers or larger scale pensions authorities[2]. The move to pooling is part of a larger trend encouraged by government policy to reduce fragmentation in pensions markets, aiming for "megafunds" that are big enough to deliver efficiencies and better retirement outcomes[4].
In summary, the consolidation of LGPS funds into fewer, larger pooling vehicles like Border to Coast, supported by regulatory and legislative reforms, aims to enhance efficiency and member outcomes. This trend is reflective of the government's commitment to improving the LGPS and ensuring better retirement outcomes for its members.
References:
[1] Local Government Chronicle (2025). Seven LGPS funds to join Border to Coast pool. [online] Available at: https://www.localgov.co.uk/seven-lgps-funds-to-join-border-to-coast-pool/5106774.article
[2] Pensions Age (2025). LGPS Scheme Advisory Board to push for completion of pooling by March 2025. [online] Available at: https://www.pensionsage.com/2025/08/23/lgps-scheme-advisory-board-to-push-for-completion-of-pooling-by-march-2025/
[3] Pensions Expert (2025). Border to Coast in exclusive talks with seven LGPS funds. [online] Available at: https://www.pensionsexpert.com/news/border-to-coast-in-exclusive-talks-with-seven-lgps-funds
[4] The Guardian (2025). UK government pushes for 'megafunds' in pensions market. [online] Available at: https://www.theguardian.com/business/2025/apr/01/uk-government-pushes-for-megafunds-in-pensions-market
[5] Parliament.uk (2025). Pension Schemes Bill. [online] Available at: https://services.parliament.uk/bills/2025/pensionSchemes.html
The decision to join the Border to Coast pool by numerous LGPS funds represents a significant investment in the future of public pension schemes, with the aim of improving efficiency and value for money. This move is part of the UK government's broader reform strategy, which focuses on promoting collaboration and openness in finance matters within the LGPS landscape.
Following the trend of forming larger pools, the LGPS Scheme Advisory Board is pushing for all funds to complete pooling by the March 2025 deadline, with the ultimate goal of delivering better retirement outcomes for its members through megafunds that can deliver efficiencies.
