LPFA In The News

As an organisation LPFA will regularly feature in news articles, whether this is to do with topical issues around the Local Government Pension Scheme, or issues specific to LPFA. Have a look at some of the links below......

 

Proposals to create a pan-London LGPS fund: April 2012

London Pensions Fund Authority (LPFA) has recently appeared in the trade and national press (PDF 929KB - opens new window) regarding proposals to merge the LGPS funds in London to create a pan London fund. The proposals would involve the pooling of both investment funds and administration functions. The proposals suggest all the councils could benefit from reduced costs and greater buying power from the economies of scale of pooling the pension funds.

LPFA’s role in this has been to encourage debate on the subject with a view to see how the estimated £30m of savings might be achieved. A paper was issued to a Leaders’ Committee of London Councils in March where further research was commissioned and will be reported in July. There are significant challenges to investigate before the proposals can go any further but the move has been welcomed by the CBI and Eric Pickles who is “broadly supportive” of the plan.

Mike Taylor, LPFA’s Chief Executive:

 

 

“It’s time to think: is this the most efficient way to do things. I’m pretty confident that nobody in their right mind would invent 34 different authorities to do the same thing, even non-core stuff like running pension funds.”

The proposal could pave the way for an increased investment in infrastructure projects – providing the necessary investment business case was satisfied. This has received the backing of the Mayor of London Boris Johnson. LPFA has previously highlighted support for increased investment in infrastructure as an asset class since it is a good match for pension fund liabilities. LPFA has signed a Memorandum of Understanding with the Treasury which confirms participation in any discussions but does not commit LPFA to any future investment.



LPFA's response to investment infrastructure funds: January 2012

An article appeared in the Times this morning outlining an idea to use local government pension scheme assets to invest in infrastructure funds. This was headlined "Osborne to raid £140bn town hall pension pot" which was an incorrect summary of the proposal. LPFA's view is that infrastructure funds are a good match for pension fund liabilities and a proper asset class for a pension fund to invest in. Indeed we already have an allocation of £150m in such funds. LPFA has signed a Memorandum of Understanding with the Treasury which confirms participation in any discussions but does not commit LPFA to any future investment.

For LPFA the investment case is of utmost importance. If the returns to the fund are attractive and the investment case can be made with appropriate governance structures in place, then LPFA will investigate the possibilities further. Suitable guarantees would also be requested from the Government on the level of future returns

 



LGPS seeks greater influence in reforms: Pensions Week September 2011

 LGPS seeks greater influence in reforms - Pensions Week September 2011



UK pension schemes should be 'incentivised' for sharing admin: IPE Online Sept 2011

 UK pension schemes should be 'incentivised' for sharing admin - IPE Online September 2011



Lower LGPS accrual rate could make short-term Treasury savings: Professional Pensions Sept 2011

Lower LGPS accrual rate could make short-term Treasury savings - Professional Pensions September 2011



London plans 'fair and affordable' LGPS by 2015: Public Finance Sept 2011

London plans 'fair and affordable' LGPS by 2015 - Public Finance September 2011



Radical pension proposals unlikely to avert strikes: Financial News Sept 2011

Radical pension proposals unlikely to avert strikes - Financial News September 2011



Council staff risk being 'dragged' into autumn pension strikes: Local Gov Online Sept 2011

 Council staff risk being 'dragged' into autumn pension strikes - Local Gov Online September 2011