BLUE BUDGET 2015: Govt to work with LGPS to pool investments

Chancellor George Osborne has announced in the Budget the government will work with Local Government Pension Scheme administering authorities to pool investments.

It is hoped that this will significantly reduce costs while maintaining overall investment performance. As part of this the government will invite local authorities to come forward with their own proposals to meet common criteria for delivering savings.

A consultation to be published later this year will set out those detailed criteria as well as backstop legislation which will ensure that those administering authorities that do not come forward with sufficiently ambitious proposals are required to pool investments.

“The NAPF and its LGPS member funds will engage constructively with the Government on this initiative; but it’s clear that pooled investments will work most effectively where they arise out of natural collaboration between funds rather than where funds are forced to invest together,” said NAPF chief executive Joanne Segars.

According to PwC public sector pension director Mark Packham, today's announcement on asset pooling should go "a long way" to address the affordability of the Local Government Pension Scheme and strikes a clever balance between encouragement and mandation.

"The reward for getting this right should add up to £600 million a year across the country," he added.

    Share Story:

Recent Stories

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Cost transparency
Pensions Age editor, Laura Blows, discusses investment cost transparency and savings with Aon’s Neil Smith and Chris Hawksworth. Please click here for an edited write-up of the video
Multi asset credit
Pensions Age editor, Laura Blows, discusses multi asset credit with Royal London Asset Management senior fund manager, Khuram Sharih

Advertisement Advertisement