Government guidance states that Local Government Pension Funds (LGPS) should work together to pool investments. They should do this to reduce costs, while maintaining investment performance. Since 2016 East Sussex Pension Fund (ESPF) has been part of the ACCESS LGPS Asset Pool – along with ten other LGPS Funds.
The Government launched its "Fit for the Future" consultation in late 2024. This set out key reforms to investment management in the LGPS, outlining minimum standards of pooling for all LGPS pools. The Government has since published its consultation response, which confirmed that Administering Authorities (like ESPF) will continue to be responsible for setting their own investment strategies but must delegate the implementation of this strategy to a Financial Conduct Authority (FCA) authorised and regulated investment management pool.
The proposed approach of our current pooling partner ACCESS to comply with the requirements of the consultation was not supported by government. As a result, ESPF is required to identify a new pooling partner by 30 September 2025.
ESPF, in conjunction with its advisors and West Sussex Pension Fund, has carried out a detailed evaluation process, to identify a partner to deliver in line with the Government's guidance, whilst ensuring alignment with its investment strategy and taking account of employers’ and members’ best interests.
On 24 July 2025, Pension Committee confirmed a preferred pooling partner as Border to Coast Pensions Partnership. Established as a regulated asset manager in 2018, they are one of the largest LGPS pools in the UK. Their purpose is to make a difference for the LGPS by providing cost-effective, innovative, and responsible investment opportunities that deliver returns over the long-term. The Committee agreed that it was the right decision to work towards becoming a shareholder in Border to Coast Pensions Partnership.
This is a major step for ESPF to meet the challenge set by Government to find a new pool, but the process is still not complete. The decision to admit a new fund to the Border to Coast Pensions Partnership rests with their shareholders. We will keep members and employers up to date on our progress. The Government has set a deadline of 31 March 2026 for this change to be finalised.
Important note: The government has been very clear that LGPS members’ benefits and pensions are guaranteed in law and will not be affected by these changes.
Please direct any queries to [email protected] (Head of Pensions) and [email protected] (Chief Finance Officer).
Border to Coast Pensions Partnership press release (11 August 2025)