Consulting firm Aon has highlighted the importance of risk management at the administering authorities in the UK responsible for managed LGPS funds.
Aon has worked with the Chartered Institute of Public Finance and Accountancy (CPIFA) to update its guide on managing risk in a local government pension scheme. Aon partner and head of public sector actuarial, Alison Murray, commented: “We believe that many LGPS funds already have well developed and effective risk management strategies in place. However, in supporting CIPFA in relaunching this publication, our intention is to encourage administering authorities to step back and to review their approach to all aspects of risk management.”
CIPFA pensions network advisor, Neil Sellstrom, commented: “In producing this guidance, we were keenly aware of the special nature of the LGPS as a funded public service scheme, most of whose participating employers are likely to have a greater capacity to absorb risk than their counterparts in the private sector. It is important therefore to strike the right balance between risk control and being too risk averse.”