Speaking at the National Association of Pension Funds (NAPF) local authority conference today, local government minister Brandon Lewis raised the prospect of significant structural changes to the way in which the local government pension scheme (LGPS) is administered, including fund mergers.
Commenting on the Minister’s speech, CIPFA Pensions Panel Chair, Bob Summers, said:
“It is important that funds explore every opportunity in the search for achieving the best value for money in delivering the LGPS. In the light of the financial challenges facing local government, and with the prospect of another tight CSR round to come, many funds are already doing exactly that.
“Fund mergers are just one end of a spectrum of measures which includes removing regulatory barriers to better fund management, developing shared services, collaborative procurement, framework agreements and the emerging collective investment initiatives, all of which can drive improvements through reduced administrative costs and increased investment returns.
“The key to success lies in ensuring that decisions on changes designed to deliver better value for money are based upon the best available data, build upon existing initiatives and are achievable within a realistic timeframe. There is a risk of destabilising the LGPS structure at a critical point in the delivery of the new scheme. This must be addressed and a sensible balance struck between the need to deliver the pensions service and the competing demands upon ever dwindling local authority resources.
“CIPFA looks forward to working with DCLG to define the savings objectives required and contributing to the forthcoming call for evidence.”
CIPFA Press Office
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Notes to editors
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.