Laura Sharman 29 October 2015

Figures show local government pension funds have grown by 13%

Figures show local government pension funds have grown by 13% image

Local Government Pension Schemes (LGPS) have been praised for their strong performance following the publication of new figures showing the value of funds increased by 13% in the past year.

The figures also show the total income (£15.2bn) outstripped total expenditure (£12.1bn), and fund admin costs fell to £121m from £123m the previous year.

Brian Strutton, GMB national secretary, said: ‘The 81 LGPS funds in England should be congratulated for another successful year managing the pension pots of nearly five million council workers and former workers.’

‘Cash flow continues a decade of being in surplus with income again outstripping expenditure and investments were good so that the value of the LGPS funds grew by 13% over the last year to over £200bn.’

However, GMB warned that past deficits are costing employers an extra £3bn a year and called on the Government to address the problem.

Mr Strutton added: ‘It's not clear why government wants to change the way these successful funds operate their investments, risking all the good work being done, while ignoring the real problem of the scheme's deficit that is costing employers and ultimately the taxpayer so much.’

Fund management costs increased from £689m up from £449m, but the Chartered Institute of Public Finance and Accountancy (CIPFA) said the rise was due to a new cost reporting format aimed at increasing transparency.

CIPFA chief executive, Rob Whiteman, said: ‘Through improved transparency and understanding of fee levels, it should now become more possible to assess the relative value of both different assets and different fund managers.

‘The figures also demonstrate that employers are taking a responsible approach to the issue of fund deficits as their contributions have increased year on year by 13%, some £800m.’

SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker - Children With Disabilities (CWD) - Chelmsford

Essex County Council
£30906 - £42254 per annum + Free Parking & Great Benefits
Please note that this opportunity is NOT OPEN to Newly Qualified Social Workers. In line with the newly created Skills and Capability Framework for England, Essex, Chelmsford
Recuriter: Essex County Council

Economic Data Analyst - SELEP - South East LEP Area

Essex County Council
£30906.0 - £34017 per annum + + Great Benefits Package
Please note that while listed with Chelmsford as the primary location, existing members of the SELEP team reside across Essex, Kent, East Sussex and b England, Essex
Recuriter: Essex County Council

Sector Engagement Lead - SELEP - South East LEP Area

Essex County Council
£39168.0 - £43299 per annum + + Benefits Package
Please note that while listed with Chelmsford as the primary location, existing members of the SELEP team reside across Essex, Kent, East Sussex and b England, Essex
Recuriter: Essex County Council

Director for Adult Health & Social Care

Nottingham City Council
circa £103,000
We are really excited to offer a unique opportunity to join our Leadership Team as our new Director for Adult Health and Social Care Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Finance Assistant (P2P & Income)

Essex County Council
Negotiable
Job Purpose Purchase to Pay (P2P) and Income aims to provide a comprehensive financial transactional and support service, maximising new and innovat England, Essex, Chelmsford
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue