William Eichler 13 October 2016

Membership of council pension funds ‘on the rise’

Local Authority Pension Funds (LGPS) are continuing to grow both their assets and fund membership, new research reveals.

A new study, commissioned by State Street Corporation, found between 2013 and 2015 the number of active LGPS members increased from around approximately 1.7m people to 2.1m.

Alongside the increase in membership, State Street discovered contributions to the pension funds were also on the rise.

There was a 31% increase in from local government and a 6% increase from members.

Nick Wright, head of UK, Middle East, Africa, Netherlands and Nordics at State Street said LGPS member funds were facing ‘huge challenges’ but overall were ‘positioned well with the asset pooling project.’

‘We can see that they are investing a lot of time and energy in ensuring they understand the operational and regulatory challenges ahead of them, and are developing strong strategies,’ Mr Wright added.

State Street also carried out an additional survey of 400 pension professionals, which found the sector was facing ‘significant challenges’ globally.

Four out of ten (40%) respondents claimed it’s getting harder to ensure they don’t breach local regulatory limits on exposure to specific asset classes.

More than six out of ten (61%) reported looking to insource more risk management tasks to improve operations and efficiency levels, and 53% said they intended to carry out more investment related functions in-house.

Over half (51%) are looking to increase the autonomy of their investment function, while 61% said they intended to adjust the balance of responsibilities between their fund’s board and management.

Nearly half (48%) are looking to change their process of recruiting new board members.

Andy Todd, head of UK pensions and banks, Asset Owner Solutions at State Street said: ‘As pension funds come under pressure to deliver better long-term returns to members at lower costs, it’s clear that pooling knowledge, as well as assets, is not solely a cost-saving measure, but also as an important means of developing new capabilities and opening up fresh opportunities.’

SIGN UP
For your free daily news bulletin
Highways jobs

Pause Practice Lead

Oxfordshire County Council
£54495 - £57864
Are you an ambitious, creative and influential leader who is passionate about reducing the number of children being removed into care by supporting women to bring about change in their lives? About Pause Pause works with women who have experienced re Oxford
Recuriter: Oxfordshire County Council

Multi Schools Council Quadrant Facilitator

Essex County Council
£29121.00 - £34259.00 per annum + + 26 Days Leave & Local Gov Pension
Multi Schools Council Quadrant FacilitatorPermanent, Full Time£29,121 to £34,259 per annumLocation
Recuriter: Essex County Council

Early Help Navigators (MASH Service)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,737 - £49,365 per annum
Early Help Navigators (MASH Service)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Residential Worker

Durham County Council
£30,024 - £33,699 plus allowances
WHAT WE DO MATTERS The team at Aycliffe Secure Centre provide a caring, trauma informed and aspirational environment for young people aged between 10 Newton Aycliffe
Recuriter: Durham County Council

Occupational Therapist

Oxfordshire County Council
£38220 - £40777
Help us deliver our vision for adult social care in Oxfordshire About us At Oxfordshire County Council, you do not just work for us… you learn, grow, and thrive with us. Whatever your career aspirations are in adult social care, we are here to supp Banbury
Recuriter: Oxfordshire County Council
Linkedin Banner