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

Assistant Finance and Business Development Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £49,365 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Occupational Health Advisor

Durham County Council
£44,075 to £48,226 p.a. (Grade 12) pay award pending
Due to increased service demand we have an exciting opportunity for an additional Senior Occupational Health Nurse to join our well-established in-hou Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
£35,412 - £39,152 / £40,777- £45,091 pro rata i.e. grade 9 pre progression/grade 11 post progression
We seek a full-time, permanent Social Worker who is calm under pressure and passionate about improving the lives of service users. WHAT IS INVOLVED? Durham
Recuriter: Durham County Council

Young Person's Advisor

Durham County Council
Grade 8 - £32,597 - £36,363
X1 Young Person’s Advisor – Full-Time (Temporary for 12 months) An exciting opportunity has become available within the Unaccompanied Asylum-Seeking Spennymoor
Recuriter: Durham County Council

Sufficiency Support Officer

Durham County Council
£28,142 - £31,022
Do you want your work to make a real difference to the lives of children and young people in our care?   This is a brilliant opportunity to join a new Spennymoor
Recuriter: Durham County Council
Linkedin Banner