Local Government Pension Fund

Debate between Baroness Stedman-Scott and Baroness Taylor of Stevenage

Monday 18th May 2026 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I am always trying to make sure that things happen in months rather than years. It is not as easy as I might have thought it was, but we do endeavour to do that. Regulations on governance, pooling and investment will be laid at the end of this month. They are expected to enter into force at the end of June. These will be made using powers under the Pension Schemes Act 2026, which, as we all know, received Royal Assent on 29 April this year. Guidance on governance, investment strategy statements and pooling will be published in advance of the regulations entering into force.

[Baroness Stedman-Scott (Con)]

My Lords, what assessment have the Government made of so-called lifestyling pension strategies, also known as target date or pathway funds, where savers are automatically moved out of growth assets and into gilts and bonds as they approach retirement, often without actively choosing to do so or fully understanding the impact of the switch?

[Baroness Taylor of Stevenage (Lab)]

That is very important, and the new system is partly to make sure that the fiduciary duty is undertaken by scheme managers and by the democratic oversight that these schemes have. I hope that all those involved in the Local Government Pension Scheme will take that responsibility as seriously as they always have. I was on a pensions committee for many years. We always took that very seriously because the whole purpose of the scheme is to make sure that people get what they are entitled to once they retire.