# Pension Schemes Act 2026, Section 2: Asset management

Extent: E+W+S

(1) Where scheme regulations relating to a scheme for local government workers make provision under section 1(1), the regulations must make provision about the management of the funds and other assets for which the scheme managers are responsible.
(2) The provision made by virtue of subsection (1) must include provision for securing that (among other things)—
(a) each scheme manager formulates, publishes and keeps under review an investment strategy,
(b) the funds or other assets for which a scheme manager is responsible (other than money needed for making payments under the scheme from the pension fund maintained by that scheme manager) are—
(i) held on behalf of the scheme manager by an asset pool company in which the scheme manager participates (subject to any transitional arrangements permitted by the regulations in relation to the transfer of funds or assets to the company), and
(ii) properly managed by that company with a view to implementing the scheme manager’s investment strategy, and
(c) in the case of a scheme for local government workers for England and Wales, each scheme manager (other than the Environment Agency) co-operates with an appropriate strategic authority to identify and develop appropriate investment opportunities.
(3) The provision made by virtue of subsection (1) may include, in particular, provision about—
(a) sources of advice that a scheme manager must, or may, use in formulating its investment strategy, and
(b) matters that must, or may, be covered by an investment strategy.
(4) The matters referred to in subsection (3)(b) include—
(a) the scheme manager’s approach to responsible investment,
(b) the scheme manager’s approach to local investments, and
(c) strategic asset allocation or target ranges for growth and income.
(5) In this section—
“investment strategy” means a statement of a scheme manager’s objectives, priorities and preferences in relation to the investment of the funds and other assets for which it is responsible;
“local investments”, in relation to a scheme manager, means investments in, or for the benefit of persons living or working in—
(a) the scheme manager’s area, or
(b) the areas of the other scheme managers participating in the same asset pool company as the scheme manager;
“strategic authorities” means—
(a) the Greater London Authority,
(b) a combined authority in England established under section 103 of the Local Democracy, Economic Development and Construction Act 2009,
(c) a combined county authority in England established under section 9(1) of the Levelling-up and Regeneration Act 2023,
(d) any other local authority in England of a description prescribed for the purposes of this paragraph in scheme regulations, and
(e) a corporate joint committee in Wales established by regulations under Part 5 of the Local Government and Elections (Wales) Act 2021 (asc 1).

---
Source: https://www.legislation.gov.uk/ukpga/2026/22/section/2 (the official version)
Page: https://openlegislation.uk/pension-schemes-act-2026/section-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.