Published
13th December 2024
In her inaugural Mansion House speech as Chancellor on 14 November 2024, Rachel Reeves announced a review of the Local Government Pension Scheme (LGPS), covering the areas of asset pooling, UK and local investment and governance.
The government’s interest in how the LGPS invests, and what we invest in, has grown over the years, and this review follows the introduction of investment pools in 2016 which were set up to tackle fragmentation and inefficiency through consolidating investments and reducing the associated costs. Essex Pension Fund is a member of the ACCESS Pool, and you can find out more about our work here.
How will this impact on LGPS members?
The review will not impact on scheme members or employers as its focus is on investments and asset pooling and not the scheme benefits or the day-to-day administration of the Fund.
The LGPS remains a defined benefits pension scheme, which means that your pension benefits are guaranteed, safe and secure. They are not impacted by investment returns or stock market fluctuations. Essex Pension Fund will continue to provide the best class service to all its members.
ACCESS have published following response:
On Monday 2 December 2024 Councillors from the ACCESS Joint Committee held a workshop to discuss the Government Pension Review.
Work has been initiated to explore all options on how ACCESS responds to the new requirements. These options include building a new investment company.
Councillors noted the work undertaken by Fund officers, the ACCESS Support Unit and Pool advisers.
Chair of the ACCESS Joint Committee, Cllr Mark Kemp-Gee said:
“ACCESS notes the Mansion House speech and the Chancellor’s proposals for consultation. We are already a ‘megafund’ having recently passed the crucial £50bn AUM mark.
Clearly, as well as size, there are structural changes the government are seeking. We are keen to explore options on how we implement the new requirements and will be liaising with Government in the coming weeks and months.
My fellow Councillors are encouraged by the work already in progress and look forward to working, on a collective basis, towards the next stage of our Pool’s development”.
