LGPS Governance

Independent LGPS governance for a changing landscape

The Fit for the Future reform regulations came into force on 30 June 2026, establishing a more explicit governance framework for administering authorities.

As part of the reforms, authorities are required to appoint an Independent Person, meet strengthened expectations around senior accountability and knowledge, and undertake periodic Independent Governance Reviews. IGG provides focused governance support designed to strengthen scrutiny, decision making and implementation, without duplicating the role of existing actuarial, investment or legal advisers.

IGG contributed directly to the Government’s Fit for the Future consultation on LGPS reform. Our January 2025 response addressed the Senior Officer, knowledge and understanding, Independent Person and governance review proposals.

The 2026 Framework: The governance bar has moved

The reforms are best understood as a connected governance system rather than a series of isolated requirements.

Under the Independent Person and wider governance reforms, administering authorities need clear senior accountability, independent scrutiny, role-specific knowledge, effective governance and training strategies, periodic independent review, and evidence that agreed actions are implemented.

• LGPS Senior Officer: A designated senior leader accountable for the effective management and resourcing of the Fund across its pension functions.
• Independent Person: Independent professional expertise, scrutiny and constructive challenge supporting the Senior Officer and Pension Committee.
• Knowledge and understanding: Role-specific knowledge needs to be developed, recorded and assessed – not assumed from attendance at training.
• Independent Governance Review: Periodic independent assessment of whether governance arrangements meet requirements and work effectively in practice.

The governance bar has moved from having the right framework to demonstrating that it works.

Independence is the starting point. Judgement makes it valuable.

The role extends beyond governance policy. It requires the Independent Person to take a whole-of-fund view and provide professional expertise, scrutiny and constructive challenge to improve decision-making.

That means working credibly with elected members, senior officers, boards, advisers and pools while connecting governance, investment, funding, administration, risk, regulatory compliance and implementation.

• Independent constructive challenge: Test assumptions, reports and recommendations in a balanced way that improves decisions without creating unnecessary friction.
• Public-sector judgement: Work credibly around democratic accountability, formal delegations, committee structures and public decision-making.
• Whole-of-fund perspective: Connect governance, investment, funding, administration, pooling, risk and member and employer outcomes.
• Practical follow-through: Help decision-makers see what happens next, who owns it and what evidence will show that an action has worked.

Independent challenge – not another adviser

Good governance depends on high-quality specialist advice. IGG’s role is to help accountable decision-makers understand, interrogate and use that advice effectively – not to replace it.

• Actuary: Funding and valuation advice
• Legal/Administration: Technical and operational advice
• Personal Committee + LGPS Senior Officer: Accountability, scrutiny, decision-making
• Investment Adviser / Pool: Investment and implementation expertise
• Other Specialists: Advice and project expertise

Where IGG can support: Governance support built around the new framework

Our proposition is deliberately focused on scrutiny, governance and implementation, complementing rather than replacing the Fund’s specialist advisers.

• Independent Person: Independent professional scrutiny and constructive challenge supporting the Pension Committee and LGPS Senior Officer.
• Governance implementation: Turn review findings and governance priorities into clear actions, ownership, reporting and evidence of completion. Where required, IGG can provide PMO support to coordinate delivery and maintain momentum.
• IGR readiness and governance review: Practical readiness support to organise evidence, assess governance priorities and prepare for independent review. Where statutory independence requirements permit, IGG may also be able to undertake the IGR itself.
• Committee & Board effectiveness: Focused support where clearer roles, better information, stronger challenge or more effective decision-making are needed.

Procurement matters. Earlier governance engagements can affect eligibility for a future IGR. Independence should be considered when the procurement plan is designed – not after services have been commissioned.

Professional Firm Model: One accountable individual. Wider expertise behind them.

The statutory framework allows an administering authority to procure a professional trustee firm, with one named individual fulfilling the Independent Person role.

This preserves clear individual accountability while allowing the individual to draw on the continuity, multidisciplinary pensions knowledge and institutional governance infrastructure of an established firm. IGG’s wider team includes accredited and professionally qualified specialists across administration, investment, legal, actuarial, covenant, pensions management, project delivery and governance.

Why IGG? Established pensions governance behind the appointment

The case for IGG rests on evidence already established across the wider business – not unsupported claims about an LGPS track record.

• Governance core business: Professional pensions trusteeship and governance services.
• 450+ scheme appointments: Established scale across IGG’s professional pensions trusteeship and governance work.
• Institutional governance: Annual AAF 02/07 Relevant Trustee Supplement audit supporting inclusion on The Pensions Regulator’s Independent Trustee Register.
• Wider pensions expertise: Accredited and professionally qualified specialists across administration, investment, legal, actuarial, covenant, pensions management, project delivery and governance.

We are engaged with the reforms. IGG contributed to the LGPS governance debate before the final framework was published.

In January 2025, IGG submitted a formal response to the Government’s Fit for the Future consultation.

The response addressed the Senior Officer, governance and training, knowledge and understanding, Independent Person and independent governance review proposals. That engagement demonstrates an established interest in how independent governance expertise can support administering authorities.

Frequently asked questions:

Clear answers to some of the practical questions administering authorities are now working through.

What is the role of the LGPS Independent Person?

To bring independent professional expertise, scrutiny and constructive challenge in support of the Senior Officer and Pension Committee. The Independent Person helps the Committee ask better questions, understand the implications of the advice it receives, and make well-informed decisions in the best interests of scheme members and employers. The role strengthens decision-making but does not replace specialist advisers.

Can a professional trustee firm provide the Independent Person?

Yes. One individual must be named to fulfil the statutory role, although colleagues within the firm may support them.

Is the Independent Person always non-voting?

No. In most administering authorities the role supports the committee rather than becoming a committee member. At single-purpose pensions authorities, the Independent Person may serve as a voting or non-voting committee member.

When is the first Independent Governance Review due?

The first periodic IGR must be completed during the valuation period ending 31 March 2028. Subsequent reviews operate on the valuation cycle, so the interval is not necessarily exactly three years.

What should an authority do before its first IGR?

Start with evidence: governance and training strategies, delegations, decision records, risk and controls, performance reporting, investment and pool oversight, administration evidence, business planning and proof that agreed actions are implemented.

Can the same provider be Independent Person and IGR reviewer?

Not automatically. The roles have different independence tests and relevant periods. Authorities should consider the individual, legal entity, existing services and future procurement plan before commissioning work.

Start a conversation. Good governance should improve decisions – not simply add process.

Whether you are considering an Independent Person appointment, preparing for an Independent Governance Review or working through a governance action plan, talk to IGG about the governance support you need.

Talk to IGG about your LGPS governance requirements.