Ministers wanting to reform town hall pensions have backed common investment vehicles (CIVs) as a way to help deliver annual savings of up to £660m.
The controversial option of pursuing fund mergers has been shelved because it could take around 18 months longer to implement, which would lead to a ‘significant reduction in the net present value of savings over 10 years’.
The Government said its preferred CIV option, which has been supported by the likes of London Councils, would provide funds with a ‘mechanism to access economies of scale’ and it has launched a 10-week consultation on the proposals.
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