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 25 September 2025, the Pension Committee made an in-principle decision to become a shareholder in the Border to Coast Pensions Partnership (a FCA-authorised asset pool since 2018 and 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.
The decision marks a significant milestone for ESPF ahead of the deadline from government to transition assets to the new asset pool by 31 March 2026. As a result of the ESPF decision, and decisions by other LGPS Authorities, the Border to Coast partnership is set expand to 18 LGPS funds with over £110bn of assets under management from April 2026. Governance and legal work to formally bring new LGPS Funds into the Border to Coast Pensions Partnership as equal shareholders is expected to be completed by 31 March 2026.
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)
Border to Coast Pensions Partnership press release (3 October 2025)