National Association of Pension Funds (NAPF) today (Tuesday) outlined its key principles for reform of the Local Government Pension Scheme (LGPS) to ensure it meets its goal of sustainable, affordable pensions in the long-term.
This is in response to the Government’s consultation ‘Local Government Pension Scheme: Opportunities for collaboration, cost savings and efficiencies’ – published 1 May 2014.
Speaking today at the NAPF Local Authority conference, NAPF Chief Executive, Joanne Segars, set out the NAPF’s principles for LGPS reform below:
The outcome of reform should focus on delivering good value for employers, taxpayers and scheme members to ensure the long-term sustainability of the fund, not just low cost.
The outcome of reform should acknowledge the benefits that can be delivered by developing new structures and solutions that leverage scale whilst also providing funds with sufficient flexibilities to invest in accordance with their local circumstances where that is shown to add value, including internal and active management approaches.
The governance of any investment structures must be aligned with the long-term interests of LGPS funds so as to continue to provide good long-term value.
Joanne Segars commented: “The principles I’ve set out today are aimed at helping us collectively assess the success of reform and to guide us to a good outcome.
“Balancing these principles isn’t easy, I acknowledge, but that’s the challenge. The NAPF looks forward to working with Local Authority members to respond to the consultation and to shape the Government’s proposals.”
Notes to editors:
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Lucy Grubb, Head of Media and PR, NAPF, 020 7601 1726 or 07713 073023, [email protected]
Eleanor Bennett, Press Officer, 020 7601 1718 or 07825 171 446, [email protected]