Local Government: Pension Funds

(asked on 4th December 2024) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government, further to the Written Answer by Baroness Taylor of Stevenage on 26 November (HL2477), what they expect the minimum standards for asset pooling to be in the Local Government Pensions Scheme, and what would be required for the Wales Public Sector Pension Partnership to meet these minimum standards.


Answered by
Baroness Taylor of Stevenage Portrait
Baroness Taylor of Stevenage
Baroness in Waiting (HM Household) (Whip)
This question was answered on 17th December 2024

The Government is consulting on proposals for Local Government Pension Scheme (LGPS) asset pools, including the Wales Pension Partnership, to meet the following minimum standards:

  • Administering authorities would remain responsible for setting an investment strategy for their fund, and would be required to fully delegate the implementation of that strategy to the pool;
  • Administering Authorities would be required to set out their high-level objective on local investment and to take account of local growth plans in their investment strategies (or local priorities in areas not covered by local growth plans), as well as including a target range for local investment. In Wales, Administering Authorities would be required to take account of the priorities and plans of the relevant Corporate Joint Committee or Committees;
  • Administering authorities would be required to transfer legacy assets to the management of the pool;
  • Administering authorities would be required to take principal advice on their investment strategy from the pool;
  • Pools would be required to be established as investment management companies authorised and regulated by the Financial Conduct Authority, with the expertise and capacity to advise on and implement investment strategies;
  • Pools would be required to develop the capability to carry out due diligence on local investments and to manage such investments.
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