The Local Government Pension Scheme (Amendment) (Governance) Regulations 2026

5 Insertion of new regulations 55A and 55B

Before regulation 56 (accounts and audit) insert— Administering authorities: governance strategy, training strategy and conflicts of interest policy 55A (1) An administering authority must prepare— (a) a governance strategy, (b) a training strategy, and (c) a conflicts of interest policy. (2) A governance strategy is a document setting out— (a) whether the authority delegates its functions, or part of its functions, under these Regulations to a committee, a sub-committee or the LGPS senior officer of the authority, (b) if the administering authority does so— (i) the terms, structure, and operational procedures of the delegation, including the basis on which substitutes may be permitted to attend or act, (ii) the frequency of any committee or sub-committee meetings, (iii) whether such a committee or sub-committee includes representatives of Scheme employers or members and— (aa) if so, whether those representatives have voting rights, or (bb) if there are no such representatives, or if any representatives do not have voting rights, how the authority will ensure that the views of Scheme employers and members are represented in the governance of the fund, and (iv) how the authority will ensure that it has appointed an independent person in accordance with regulation 53A(5) (appointments that must be made by administering authorities), (c) the extent to which a delegation, or the absence of a delegation, complies with guidance given by the Secretary of State and, to the extent that it does not so comply, the reasons for not complying, (d) an explanation of how the governance structure and any delegation arrangements adopted by the administering authority are designed to secure the effective and efficient administration, governance and investment of the Scheme for Scheme employers, members and other stakeholders, and (e) details of the terms, structure, and operational procedures relating to the local pension board established under regulation 106 (local pension boards: establishment). (3) A training strategy is a document setting out how the authority will ensure that any persons to whom regulation 55B(1) or (2) (administering authorities: knowledge and understanding requirement for relevant persons) applies will meet the knowledge and understanding requirement in paragraph (3) of that regulation. (4) A conflicts of interest policy is a document setting out the authority’s approach to identifying, monitoring and managing actual, potential and perceived conflicts of interest in relation to the Scheme. (5) For the purposes of paragraph (4), conflicts of interest include— (a) individual conflicts relating to— (i) members of a committee or sub-committee, (ii) an officer with responsibility for the proper administration of the authority’s financial affairs, including an officer under section 151 of the Local Government Act 1972 (financial administration), (iii) the LGPS senior officer, and (iv) any independent person appointed under regulation 53A, (b) conflicts between the authority's role as administering authority and its role in any other capacity, and (c) conflicts relating to— (i) the authority's, or any other administering authority’s, participation in the relevant asset pool company, (ii) members of the local pension board, or board members of the administering authority or of the relevant asset pool company, (iii) any person who holds a position of authority within the administering authority or the relevant strategic authority, or (iv) any person employed by the administering authority or by the relevant asset pool company. (6) An administering authority may publish any two or more of the documents under paragraph (1) combined in a single document or publish them separately. (7) An administering authority must review and, if appropriate, update its governance strategy, training strategy, and conflicts of interest policy— (a) at least once in each valuation period, and (b) without delay after any significant change to any of the matters specified in paragraphs (2) to (5). (8) Before preparing or updating a governance strategy, training strategy, or conflicts of interest policy, an administering authority must consult such persons as it considers appropriate. (9) An administering authority must publish updated versions of its governance strategy, training strategy, and conflicts of interest policy, where updates are made to any of them. (10) In preparing, reviewing, updating and publishing any document under this regulation, an administering authority must act in accordance with guidance issued by the Secretary of State from time to time. (11) In this regulation— “publish” includes publish on the internet; “the relevant asset pool company” and “the relevant strategic authority” have the same meaning as in regulation 2(1) of the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026 (interpretation). Administering authorities: knowledge and understanding requirement for relevant persons 55B (1) This paragraph applies to any person who is— (a) a member of a committee, (b) a member of a sub-committee, or (c) an officer to whom an administering authority has delegated its functions, or part of its functions, under these Regulations. (2) This paragraph applies to any person who is an LGPS senior officer. (3) A person to whom paragraph (1) or (2) applies must within a reasonable period after being appointed— (a) be conversant with— (i) the rules of the Scheme, and (ii) any document recording policy relating to the administration of the Scheme which is for the time being adopted in relation to the Scheme; (b) have knowledge and understanding of the law relating to pensions. (4) The degree of knowledge and understanding required by paragraph (3) is that appropriate to the proper exercise of the functions delegated to the person by the administering authority, in accordance with guidance issued by the Secretary of State from time to time. .