Please click here to view the union’s submission to the Department for Communities and Local Government (DCLG) call for evidence on the future structure of the 89 LGPS funds in England and Wales.
Significant academic evidence demonstrates that large pension funds have better gross investment returns, lower investment expenses and lower operating costs. This can be seen by practical experience in Canada, the US and Australia; primarily in public sector funds.
New cost sharing arrangements in the 2014 LGPS will demand the most efficient and cost effective structure for delivering future benefits as the employers contributions are capped at 13%. As our submission evidence shows this could best be achieved with the merger of the LGPS funds, improved governance, in-house fund management and a passive investment strategy appropriate to the asset class.