The London Pensions Fund Authority (LPFA) has welcomed a focus on training for board members in the Local Government Pension Scheme (LGPS) consultation process. In the consultation, the government has asked if there should be regulatory requirements on local pension board members to have the training and knowledge to undertake their roles.
LPFA chief executive Susan Martin commented: “We are pleased that consultation raises the knowledge and skills of board and committee members as an important aspect of scheme governance. Our LPFA board members are appointed for their skills and knowledge of pension fund management, public service and corporate governance. We believe effective governance can create a dividend in fund performance and is an essential tool in tackling the LGPS deficit.”
Following the start of the LGPS consultation, local government minister Brandon Lewis claimed that better pension management could save £660 million over 10 years by moving to passive investment in listed bonds and equities through a common investment vehicle, as well as the use of a common investment vehicle for alternative assets. Lewis said: “Under the last administration, the cost of town hall pensions almost quadrupled to nearly £6 billion, diverting taxpayers’ money from emptying bins, cleaning the streets and keeping council tax down. This government is taking action to reduce the massive and unsustainable cost of state sector pensions. The proposals I am setting out today will help reduce investment costs by £660 million a year. For the first year in recent memory, the cost of town hall pensions to taxpayers is now falling”.