UK - Vast differences in the amount local authorities pay for administration and fund management are revealed in new government figures.
The Department of Transport, Local Government and the Regions' SF3 data for 2000-01 show that administration costs in local authority schemes range from an average of £43.62 per member in Outer London schemes to just £17.90 in metropolitan authorities.
Fund management charges varied even more with Inner London schemes paying £102.79 per member compared to only £21.37 for metropolitan authorities.
The average figure for all authorities showed an average cost of £24.24 per member for administration and £46.63 per member for fund management.
Greater Manchester Pension Fund head of pensions Peter Morris said that differences were largely a result of economies of scale with metropolitan funds generally having more members.
Morris added that fund management charges were much lower in the larger metropolitan funds as they usually had a larger proportion of their assets managed in-house – a move that can dramatically reduce costs.
However others in the industry added that charges for London funds were high because of spiralling salary costs in the area and the increasing cost of recruiting and retaining staff.
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