In the 2015 Summer Budget it was announced that the UK government would work with Local Government Pension Scheme (LGPS) administering authorities to reform how LGPS investments are managed.
The LGPS is one of the largest public sector pension schemes in the UK. It is a nationwide pension scheme for people working in local government or working for other types of employer participating in the Scheme. In England and Wales the LGPS is currently organised into ninety funds, each with an administering authority responsible for the management of its assets and liabilities and the administration and payment of pensions to its local members.
The government's plan was for LGPS funds to pool their assets into approximately six investment pools, in an effort to drive down investment costs and enable funds to develop the capacity and capability to become world leaders in infrastructure investment and help drive growth in the UK economy.
LGPS pension funds in Scotland and Northern Ireland were not affected by these proposals, and their investments have continued to be managed in the same way as previously.