The consultation on plans for all Local Government Pension Scheme (LGPS) funds to transfer their assets into pools of at least £50bn of assets, and to double their existing investments in private equity, has been described as a 'Frankenstein’s Monster’ at the PLSA Annual Conference.

Speaking in a panel discussion, PLSA Local Authority Committee chair and Surrey County Council LGPS senior officer, Neil Mason, stated that “the consultation is a bit of a Frankenstein’s Monster”.

“You can see various bits from various government departments thrown into it. We were looking for clarity from the government about what pooling should look like. I’m not sure we have got that, but we have got an instruction to go faster – with whatever that is,” he said.

According to Mason, the consultation requires the LGPS “to look at different ways of investing but at the same time to train our committee more, although we are taking more responsibility away from them. And thrown in as a bit of a wildcard, our relationship with investment consultants. It’s a real potpourri”.

“I think the subtext is that the government wants us to accelerate and then collaborate and then ultimately consolidate,” he added.

In July, the Chancellor’s Mansion House Speech announced plans to consult the LGPS on new targets to double their existing investments in private equity to 10 per cent, in a move that is expected to help unlock £25bn by 2030.

The consultation also outlined a March 2025 deadline for all LGPS funds to transfer their assets into LGPS pools, suggesting that each pool should exceed £50bn of assets.

In addition to this, the government is seeking views about proposed amendments to the LGPS’s regulations to implement requirements on pension funds that use investment consultants. It is also proposing to make a technical change to the definition of investments within LGPS regulations.

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