UK - Scheme managers and consultants are warning ministers not to tamper with the Local Government Pension Scheme following a "stocktaking" exercise.
The fears were prompted by Gordon Brown’s Budget speech, where the Chancellor said the public sector should give more consideration to local and regional differences.
Scheme managers believe the government is looking at decentralising the structure of LGPS and giving individual local authorities more power over the structure of their individual pensions arrangements.
But scheme managers and consultants oppose decentralising the LGPS, as they feel it would make the scheme far more complex.
Punter Southall principal Graeme Muir said: “There are a lot of arguments for letting local authorities do their own thing, but also for keeping everything the same.
“Letting schemes do their own thing would be more complicated, and one advantage at the moment is that because it’s all the same, it makes everything simpler.”
One local authority pensions manager – who declined to be named – added: “A lot of authorities prefer the national arrangements because it gives them something to fall back on.
“You don’t get any local fights with that.”
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).