LGPS committees score high on markets knowledge

Local government pension scheme committee members’ understanding of investment and financial markets is high, Hymans Robertson National Knowledge Assessment found, but more work is needed on less traditional areas of focus such as administration.

The assessment was conducted to help funds benchmark the knowledge and understanding of their pension committee and pension board members in line with the expectation from the Pensions Regulator. Respondents were asked to rate their confidence in the subject areas from very confident to not at all confident.

Trustees scored highest on financial markets and product knowledge, with an average score of 83%, followed by pensions governance at 71%.

Chairperson results were typically much higher on all topics than the rest of the committee and pension board members, as they averaged a score of 72.7% compared to members at 66.3%.

“It is good to see that areas that are crucial to the successful running of the funds, such as investment and financial markets, have clearly been prioritised for learning,” said Catherine McFadyen, head of LGPS consulting at Hymans Robertson. “Yet, it is important that pensions boards and committees don’t neglect other areas. They should ensure that training is continually maintained for all areas, including administration and actuarial matters.”