London Pension Fund Authority (LPFA) chairman Edi Truell is to step down to take up a position advising London Mayor Boris Johnson on pensions.
The new role will see Truell advising on increasing collaboration between public sector schemes and getting more money into infrastructure and housing in London and across the country.
Truell, who has worked at the LPFA since 2012, will resign as chairman on 1 September to take up the position.
The adviser role, which is unpaid, will involve pushing forward the Mayor's desire to create a "war chest" by consolidating funds.
Johnson believes pooling could result in savings through greater efficiencies, lower fees and improved returns. These funds would be invested in homes, roads, railways, power stations and airports to plug public pension deficits.
The Mayor believes these pools could act like sovereign wealth funds.
He said in a statement: "Edi's leadership of the LPFA has been a great success and the work that he has done so far to consolidate our funds with our northern counterparts is a triumph of service to public finance.
"If we now use this new partnership as a blueprint for further pooling of pension funds, we could have a war chest worth hundreds of billions of pounds and access to the kind of investment opportunities which have until now been the preserve of foreign sovereign wealth funds. I am therefore delighted that Edi has offered to maintain his links with City Hall and support the cause of further collaboration across public sector pension schemes."
Truell's appointment follows the government's announcement in the summer Budget that it will explore plans to force the Local Government Pension Scheme to pool investments.
It was also announced that Truell will set up an advisory board for the newly-created Lancashire and London Pensions Partnership (LLPP) - the £10bn partnership between the LPFA and the Lancashire County Pension Fund (LCPF).
He said the board will comprise a carefully selected group of world-class investment and risk management professionals which will extend its offer of advice to any public sector funds wishing to join in the LLPP.
He added: "This will make available an unprecedented level of asset and liability management sophistication and expertise to a large number of pension funds, helping them to navigate a safe course through turbulent world markets."
The funds' long-term ambition is to grow the LLPP from £10bn to £40bn.
Lancashire County Council leader and councillor Jennifer Mein said partnerships like this provide a template for driving up the performance of public sector pension schemes.
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