New Information regarding Local Government Pension Scheme
Please find below 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.
Please also see the document below on the performance of the Canadian public sector pension funds.
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.
Please also see the document below on the performance of the Canadian public sector pension funds.
| unison_circular_dclg_lgps_merger_consultationx.pdf |
| the_top_10-investing_for_canada_on_the_world_stage.pdf |
UNISON - Fighting For Decent Pensions
UNISON members in the the Local Government Pension Scheme (LGPS) voted over the summer to accept negotiated changes to the schemes.
The changes followed long negotiations after the successful strike on 30 November 2011. In the LGPS - covering workers in five UNISON service groups - members across England and Wales voted 90.2% in favour of accepting the proposed changes. UNISON led the negotiations, which resulted in proposals to maintain the current contribution levels for 90% of LGPS members, introduce a 50/50 'low cost' scheme for the low paid, and move from a final salary to a career average scheme. Welcoming the ballot result. UNISON Head of Local Government Heather Wakefield said: "These were tough negotiations, but with a focus on the majority of members who earn less than £21,000 a year, we have ensured that current LGPS members can afford to remain in the scheme and those who could not afford to do so to date can now join via the 50/50 option. "This is vital for many of our members who have suffered a decline in earnings as a result of the Coalition's pay freeze policies. Contributions are now on a fairer progressive basis. We will continue to campaign with all of the union, through the TUC, against the proposals to increase the state retirement age. " UNISON will now move into the next stage of discussions on improving the governance of the new scheme which is due to come into effect in 2014. We will bring you all the latest news as it happens, or for more information, visit www.unison.org.uk/pensions |
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