Commenting on the reported £100bn deficit of the Local Government Pension Scheme outlined by John Ralfe’s survey of Local Authorities’ accounts, Joanne Segars, Chief Executive of the National Association of Pension Funds (NAPF), said:
“Public sector pension deficits rightly get a lot of attention. However, it is essential we do not forget that pension benefits are paid over the long-term and liabilities stretch over many decades. We should not get too excited by this particular snapshot.
“Within each part of the Local Government Pension Scheme, there are clear plans in place to reduce deficits over time. Local Government has billions of pounds worth of investments set aside to fund the scheme.
“The measure of liabilities used in this survey creates an extreme snapshot, but many pensions experts do not think it is the best calculation to use.
“The Treasury and the Public Sector Pensions Commission are currently looking at how best to measure the long-term costs of public sector pensions and the best way to reform schemes to make sure they are affordable.”
Notes to editors:
1. Joanne Segars is available for interview.
2. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, Christian.firstname.lastname@example.org