Today the Department for Communities and Local Government (DCLG) launched a call for evidence into co-operation and cost reduction in Local Government Pension Scheme (LGPS).
- The largest scheme by members is Tameside, with 269,969, followed closely by West Midlands with 255, 173. The smallest fund by members is South Yorkshire Passenger Transport Authority (SYPTA), with just 2,161. This makes the average size by members 50,911.
- London Pension Fund Authority (LPFA) pays the highest total annual administration (including fund management costs) of £27,143,000, and also the highest per-member total cost of £354.63. Harrow pays the lowest total annual administration cost of just £656 or £42.45 per member, while West Yorkshire Superannuation Fund pays the lowest per-member total cost of just £28.33.
- Isolating administration costs, LPFA pays the highest at £6,444,000, while SYPTA pays just £183. However, Croydon pays the most for administration per member, at £91.08, while for Nottinghamshire the per-head admin cost is just £12.98.
- Taking fund management costs alone, LPFA again pays the most, at £20,699,000 or £270.44 per head. This is head and shoulders above the next highest-paying scheme, Essex, which pays £16,502,000. However, the highest paying for fund management costs per member is City of London, at £295.31, compared to £7.48 for West Yorkshire Superannuation Fund.
Nearly every trustee is confident of the next stage in their scheme’s strategy, despite almost an equal number being forced to consider replacing plans within the prior 12 months, according to research by Barnett Waddingham.
Companies could be overstating their pension liabilities by up to £60bn due to their life expectancy assumptions, according to XPS Pensions Group.
Defined benefit (DB) schemes that provide GMPs must revisit and, where necessary, top-up historic cash equivalent transfer values (CETVs) that have been calculated on an unequal basis, a landmark court judgment said last week.
Regulators must act now to impose some "proper regulation" to stop another defined benefit (DB) transfer advice disaster, saysTim Sargisson.
Opportunities for defined benefit (DB) schemes to pursue investment approaches that help repair the UK’s economy cannot stand in the way of improving member outcomes, Aegon says.