Pensions UK concerned over Reform UK plans to transform Local Government Pension Scheme

Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said: “We simply do not recognise the picture of the Local Government Pension Scheme that Reform UK has painted.

“The LGPS is one of the largest and most successful pension schemes in the world. It is fully funded and undergoing a major reform programme to consolidate its assets into six large investment pools ranging from £25-100 billion, with savings to date estimated at £1 billion, and with further savings to come. It is an exemplar of UK investment amongst pension schemes, with an allocation of around 17%. LGPS investment performance for England and Wales has been strong, with the scheme having achieved a return of around 7% p.a. over the last decade.

“Reform’s proposals are lacking in detail, but its intentions to place all new staff into a defined contribution scheme and to transform the scheme into a sovereign wealth fund are concerning.

“The LGPS exists solely to fund the retirements of close to 7 million local government workers, many of whom are low earners. It does not exist to manage a pool of assets to fund government projects.

“With average pension sums received of around £5,000 per year, LGPS members rely on the scheme to invest solely to fund their retirements

“Any policy proposing changes to the structure or approach of one of the largest pension funds in the world should be supported by evidence, and detailed plans.

“We stand ready to engage with Reform to ensure they have a full picture of the operation and strategic direction of the LGPS.”

Mark Smith, Head of Media Relations
020 7601 1726 | [email protected]

Cali Sullivan, Senior PR Manager
020 7601 1761 | [email protected]