The Local Government Pension Scheme (LGPS) has been urged to engage with any future governments over the next 10 years to prove it has the talent and skills to support the growth agenda.

Unison assistant general secretary, Jon Richards, said that growth would continue to drive the agenda and he was concerned that government ‘interference’ would continue up to 2035.

Addressing the Pensions and Lifetime Savings Association Local Authority Conference, Richards said the hope was there would be more political stability by 2035 to allow for changes that the LGPS would like to see.

“It’s unsurprising that the LGPS, as a big pot of money, is being seen as something to potentially play around with,” he continued. “We’re keen to make sure that this is a pension scheme and not a political football.

“However, I feel it’s very important that we work with whatever government we get and, over the next 10 years, we work with them and steer them.

“It’s very important we are clear to any future government over the next 10 years is they need to be talking to us, but also we are making clear that we are an important scheme.

“Think about how we can show them the best way to ensure that growth happens, and show the talent and skills we already have, and show them we can use that in their benefit.”

Also speaking on the panel was West Yorkshire Pension Fund managing director and PLSA Local Authority Committee member, Euan Miller, who urged the LGPS to be mindful of the possibility of something “radical” happening in the future in terms of public service delivery, such as social care moving to the NHS.

“Anything along these lines could have a significant implication for the liability profile of the LGPS,” he warned.

Furthermore, Miller highlighted the changing demographics of the country and the scheme as the number of pensioners begins to overtake the number of active members.

“The ratio of pensioner members to active members in most funds will certainly be higher than it is today,” he said. “Most LGPS funds will have more pensioners than active members in the next few years, if not already.

“While the number of pensioner members will almost certainly keep on rising, it is harder to predict how the number of active members will change in the future.

“All LGPS funds are going to become increasingly reliant on selling assets or investment income to pay their pensions. It’s not a huge problem at the moment. What we want to avoid is being an inopportune or forced seller.”

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