UK - Targets used by the London Pensions Fund Authority to improve standards could become an industrywide benchmark for scheme efficiency.
The standards, which the LPFA describe as a “national index of pension performance indicators”, use best value statistics from local government pension schemes compiled by the Office of The Deputy Prime Minister and data from Local Government Pensions Committee surveys.
LPFA chief executive Peter Scales - who has submitted proposals to the Office of the Deputy Prime Minister in the hope that the standards will be adopted nationally - said: “The benchmark was designed for local government funds using common standards but it could be used by anyone.”
Scales expects to hear back from the ODPM in the next few weeks, but added that the LPFA may promote the idea itself even if it did not get backing.
The LPFA said that it scored its own performance under the benchmark as 61 out of a possible 80, using eight different measures of efficiency.
These include investment costs and returns as a percentage of fund value, the number of members happy with the service provided, complaints as a percentage of workload, administration costs as percentage of both fund value and the number of members.
Key figures from this assessment include on-time processing at 98%, fund members satisfied with the overall service at 91% and investment costs at 0.1% of the fund value.
LPFA said its high standards had helped it increase the outsourced pension contracts it administers.
Over the last year it secured five-year pension administration contracts with the London boroughs of Hammersmith & Fulham and Brent, and renewed contracts with Westminster City Council and the London Borough of Ealing.
In total, it currently looks after the administration of 110,000 scheme members at eight local authorities as wellas the 73,000 members within the LPFA.
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