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From 11th May 2026 all elected councillors and mayors in England are eligible to join the Local Government Pension Scheme (LGPS). Membership will not be automatic, individuals need to actively complete an opt-in form and return it to the authority they serve.

The inheritance tax rules are changing for all pension schemes from 6 April 2027. 

From this date, if you have nominated someone other than your married spouse or civil partner, any death grant due may become subject to inheritance tax, depending on the total value of your estate. 

Death in service grants which are payable to beneficiaries of active members are exempt.

In the LGPS, women typically receive lower pensions than men which is known as the gender pensions gap. From 1 April 2026, new LGPS rules give active members stronger pension protection during periods away from work, helping to reduce the gender pensions gap. 

Your pension will continue to build up during certain unpaid periods of child related leave, and during short authorised unpaid breaks. There are also more generous and flexible rules for buying back lost pension if you take longer unpaid leave.

Changes to LGPS regulations mean death grants are paid more flexibly and fairly.

The age limit for paying a death grant has been removed, meaning a grant may be payable even if a member dies after age 75. This change also applies to some deaths that occurred in the past. 

There are also changes to how late death grants are paid, giving the pension fund more discretion to pay beneficiaries. This will potentially reduce tax.

Changes to LGPS regulations mean survivor pension benefits will be calculated more fairly, regardless of sex or type of partnership. From 1 April 2026, some survivor pensions may increase, and some will become payable for the first time. The changes apply retrospectively in some cases. 

If you think these changes impact you, you don’t need to do anything. We will review all relevant cases, and contact anyone affected by this change.

The UK government has confirmed that councillors and elected mayors in England will be eligible to join the LGPS from 11 May 2026. Joining the pension scheme will be voluntary, not automatic. Councillors and elected mayors will enrol into the scheme on an opt-in basis through the authority they serve. Information on how to do this will be published once it’s available.

All our active members’ Career Average Revalued Earnings (CARE) pensions were revalued in April 2025. The value of the CARE pension increased by 1.7%, in line with the Consumer Price Index (CPI) figure for September 2024. 

Our deferred members have also had their total pension increased by 1.7%, again in line with September 2024 CPI.

Our 2024 Responsible Investment Report highlights the investment risks and opportunities the Fund faces. These include climate change, human rights and biodiversity. 

This year we examine the investment case for solar energy, positive impact via affordable housing investments and a forward look on natural capital investing.

We outline our focus areas for 2025 to ensure we meet our environmental, social, and financial priorities.

Our 2024 strategy includes a commitment to local impact investments, an approach embodied in our recent collaborative investment in south-west solar farms. Find out more in the case study, including where we plan to invest next for local impact. 

As committed responsible investors for over 20 years, our strategy covers our approach to responsible investing. You can also read about our approach to reaching net zero by 2045.

The new investment forms part of the largest operational solar deal ever transacted in the UK. It involves the Avon, Cornwall, Devon, Gloucestershire, Oxfordshire and Wiltshire LGPS Funds, who share a strong commitment to tackling climate change. The collaborative investment in south-west solar will generate around 196MW, enough to power nearly 70,000 homes.