5. Regulatory Update
Regulatory change will be considerable in 2026-27. The government has already notified LGPS Funds of new regulation changes being introduced from 1 April 2026 based on the Access and Fairness, and the Access and Protection Consultations published in 2025.
Key changes impacting funds in 2026 include 1) Equalisation of survivor pensions and death grants, 2) Gender gap benefits which will mean amendments to regulations to make more periods of authorised absence pensionable, 3) Introduction of a new Councillors Pension Scheme for England.
Whilst new regulations will become effective, the Fund is still working on the McCloud Remedy which has been extended to August 2026, as guidance is not complete for all processes. Work is still to be completed for members with divorce debits, club transfers, and members with Teachers’ excess service.
For Pensions Dashboard, the Fund connected to the Integrated Service Provider (ISP) in October 2025. Work is ongoing to ensure that data, systems, and processes are compliant prior to the ‘Go Live’ date, assumed to be October 2026 and requiring the Secretary of State to give at least 6 months’ notice.
Annual projects for 2026-27 include Annual Benefit Statements for deferred and active members and Annual Allowance Statements for members breaching the annual allowance.
Looking further ahead, the Fund will need to review systems, processes, and communications for upcoming regulatory changes, including IHT on death grants and un-used pension benefits in 2027, and increase in the minimum pension age (to 57) in 2028.