Nine Local Government Pension Scheme (LGPS) funds have formally indicated their intention to join the expanded Local Pensions Partnership Investments (LPPI) pool.

The LPPI confirmed that a memorandum of understanding had been signed by the Devon, Avon, Dorset, Somerset, Cornwall, and the Environment Agency pension funds alongside existing partners, including the Lancashire County Pension Fund, the London Pensions Fund Authority (LPFA), and the Royal County of Berkshire Pension Fund.

This marks the first formal step in advancing the expansion of the pool, which was announced earlier this year, after LPPI confirmedthat it was in discussions with several funds about their intent to join the pool.

LPPI said it will now work with all nine funds to ensure a smooth and efficient onboarding process as equal shareholders, with the formal transition expected to be completed ahead of the government’s 31 March 2026 deadline.

Once fully integrated, the enlarged pool will oversee more than £54bn in assets under management, making it one of the largest LGPS pools in the UK.

The organisation previously said that any new structure would need to remain aligned with the fund’s existing investment strategies while meeting government expectations on LGPS pooling.

LPPI chief executive, Chris Rule, said the MoU represented a key milestone, signalling a move “from due diligence and planning to execution”.

He added that LPPI looked forward to working closely with both existing and incoming partner funds “to achieve their strategic goals, all while delivering on the ambition of Fit for the Future and extending the benefits of pooling to more members, employers and taxpayers”.

Commenting on behalf of one of the joining funds, Avon Pension Fund Committee chair, Toby Simon, said the MoU provided a strong foundation for collaboration.

He expressed confidence that a larger pool would support “innovative approaches to collective investment based on the highest standards of environmental, social and governance (ESG)”.

Royal County of Berkshire Pension Fund Committee chair, Cllr Simon Bond, also welcomed the development, describing the MoU as “the first step” in enlarging the LPPI pool.

He said Berkshire looked forward to working with the new partners to ensure a smooth transition “alongside our core function of providing pensions for members of the pension scheme”.

The update follows confirmation from LGPS Central last month that six partner funds had formally indicated their intention to join the central England-based pool, bringing the total number of partner funds to 14.

This reflects continued momentum behind LGPS pooling, following recent government updates on consolidation timetables and the department’s push for larger, more efficient investment structures.

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