William Eichler 13 October 2016

Membership of council pension funds ‘on the rise’

Membership of council pension funds ‘on the rise’ image

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.’

Re-write the rules of recruitment image

Re-write the rules of recruitment

Anne-Marie Scott offers her predictions for public sector recruitment challenges for 2020 and asks, ‘how do we recruit the right candidates?’
SIGN UP
For your free daily news bulletin
Highways jobs

Front-End Developer - Learning Platform

Essex County Council
Negotiable
Essex County Council (ECC) is one of the largest and most dynamic local authorities in the UK, serving a population of 2 million residents, and has a England, Essex, Chelmsford
Recuriter: Essex County Council

Personal Advisor - Leaving After Care

Essex County Council
Negotiable
Please note this is a fixed term /secondment opportunity until August 2021. (please discuss with your current manager if you are considering a secondm England, Essex, Colchester
Recuriter: Essex County Council

Personal Advisor - Homelessness

Essex County Council
Negotiable
Please note this is Fixed Term Contract/secondment opportunity until 31st March 2021. (please discuss with your current manager if you are considering England, Essex, Harlow
Recuriter: Essex County Council

Commercial Vehicle Technician

Chelmsford City Council
£30,000 per annum
We are seeking a fully trained HGV technician to work as part of the team who maintain the Council's fleet to the highest standards.  Chelmsford, Essex
Recuriter: Chelmsford City Council

Social Worker - Carer Assessment Team (Fostering)

Barnet London Borough Council
£39,040.00 - £49,950.00 Per Annum
In Barnet we value our Social Care staff and we know that our biggest and most important resource are its workforce. Colindale, London (Greater)
Recuriter: Barnet London Borough 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