Harrow Pension Fund is set to join the London Collective Investment Vehicle (LCIV) pooling arrangement, a move that aligns with government reforms aimed at consolidating Local Government Pension Scheme (LGPS) assets. The decision was made during a Pension Fund Committee meeting on March 16, 2026, where members considered the proposal for Buckinghamshire Pension Fund to become part of the LCIV.
Buckinghamshire Pension Fund, previously part of the Brunel pool, sought a new home as a consequence of government reforms that reduced the number of LGPS pools.
They sought a new home and identified the LCIV as a suitable partner.
The admission of Buckinghamshire Pension Fund to the LCIV is considered financially neutral to existing shareholders and aligns with the LCIV's growth objectives. Buckinghamshire Pension Fund will contribute £331,000 to cover set-up costs associated with joining the LCIV.
This expansion is expected to lead to economies of scale, which will reduce Harrow's costs
per pound of investment. Buckinghamshire Pension Fund, being a bigger fund
than the London funds, will contribute to reducing ongoing costs for all participants. However, it was noted that Buckinghamshire Pension Fund will have the same equal voice
in shareholder committee meetings, meaning Harrow's voice will be diluted from one of 32 to one of 33. With the addition of Buckinghamshire Pension Fund, there will be 33 partner funds
in the LCIV.
The government reforms driving LGPS consolidation include the Pensions Schemes Bill, which aims to legislate for government-mandated pooling of LGPS assets.
The government's backstop powers
within the bill are intended as a safeguard against failures in governance, scale, efficiency, or risk management.
Additionally, reforms stemming from the Access & Fairness
consultation are set to be implemented from April 2026, including equalising survivor benefits, removing the age-75 death grant cap, and making unpaid leave pensionable.
The committee agreed to delegate authority to the Strategic Director of Finance to review and agree the necessary legal documentation, including the LCIV Articles of Association and shareholder agreement, to facilitate Buckinghamshire's admission. This development is part of a wider trend within the LGPS, driven by government reforms that have reduced the number of LGPS pools from eight to six. The LCIV, which already serves 32 partner funds, will now include Buckinghamshire as its 33rd partner.
Public reports pack Monday 16-Mar-2026 18.30 Pension Fund Committee
