City Regions: Pension Funds

Lord Christopher Excerpts

Tuesday 23rd February 2016 Lords Chamber

[Lord Christopher (Lab)]

My Lords, following what was an accurate answer to the noble Lord, Lord Tugendhat, what arrangements are made when various pension funds pool resources to ensure that the individual potential beneficiaries of the funds are looked after?

[Baroness Williams of Trafford]

My Lords, the noble Lord makes a vital point. The job of a pension fund, first and foremost, is to maximise the returns for its investors—there is absolutely no doubt about that. However, in pooling the resources of a pension fund, for example, you could go to fewer fund managers, which cost a lot of money relatively, and therefore have more efficient pension funds than perhaps we have now in local authority schemes.