Reducing the number of Local Government Pension Scheme (LGPS) funds should now be considered as part of the wider trend in the UK pensions market towards consolidation, London Pension Fund Authority CEO, Robert Branagh, has suggested.

Talking about LGPS consolidation at the PLSA Investment Conference 2024, Branagh said that “the government generally wants less and that should equally apply to LGPS as it does to defined contribution, defined benefit and master trusts”.

He stated: “Most people today accept that the government is finally more interested in pensions in a positive way, as are Labour front bench officials.

"As part of that I think we should be open minded as to whether we may be able to do more things together.

"We may do back office shared services, some stuff on governance or employer covenant, whatever it is, there is plenty of scope for LGPS to collaborate and move forward. I think the conversation about consolidation should now start happening in this changing environment, with the possibility of fewer than 86 England and Wales LGPS funds."

He highlighted how each LGPS fund “has got its own actuary, lawyer and whatever else – you’re not telling me that this is the most efficient way to look after 6.2 million members in the UK. It is not".

"So consolidation I feel is very much part of this broad alignment of what we can do to have better outcomes for members and employers," he added.

In February, Local Government Minister, Simon Hoare, stated that he is giving “serious thought” to the prudence of retaining as many as 87 Local Government Pension Scheme (LGPS) funds, suggesting there could be a "better way”.

Speaking at a Local Government Authority (LGA) conference, the minister said: “I am giving serious thought to, and would value your opinions on, the prudence of retaining as many as 87 funds. I’m convinced there’s a better way."

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