Local government reorganisation (LGR) is gathering pace, and for the Local Government Pension Scheme (LGPS), it means one thing: significant change. Employers and administering authorities will face a wave of administrative, governance, and funding challenges - and the time to prepare is now.

What’s changing?
Expect mergers of scheme employers, TUPE transfers, and role restructuring. Administering authorities may merge or even be newly created, while Pension Committees and Boards will see membership changes following elections. These shifts will require new relationships with strategic authorities and updates to governance frameworks.

Practical impacts
The administrative workload will surge: allocating members to the correct employer, handling pay changes, processing redundancies and transferring records. Technology systems may need updating. Governance will also be under pressure, with new board members requiring induction and policies needing review. Funding strategies will need recalibration as assets and liabilities are reallocated and contribution rates reassessed.

Risks to watch
With so much change, risks multiply: administrative overload, delays, mistakes and reputational damage. Governance gaps could lead to poor decisions, while employers may face financial strain from early retirement costs. Senior officers’ attention may be elsewhere, and debates over redundancy costs and surplus release will intensify.

Opportunities amid disruption
Despite the challenges, LGR offers a chance to implement Good Governance reforms, reassess employer risk profiles, and strengthen funding strategies. It could also drive operational efficiency by streamlining processes and investing in technology.

What should you do now?
Start planning early. Treat LGPS implications as a core workstream in reorganisation projects. Map stakeholders, engage them early, and grow capacity to handle the workload. Support colleagues as they’ll be under pressure and communicate clearly to manage expectations.

Final thought
Change is never easy, but with strategic planning and proactive engagement, employers and administering authorities can navigate LGR successfully and even turn disruption into an opportunity for improvement.

For help with navigating the pensions aspects of local government reorganisation, please contact me.