The majority (85 per cent) of Local Government Pension Scheme (LGPS) professionals remain positive about working with the scheme, although concerns over resourcing, the overlapping of various governing organisations and the burden of regulatory initiatives remain evident.

Research from the Pensions and Lifetime Savings Association (PLSA) found that while nearly a third (32 per cent) of LGPS professionals had seen an improvement in their ability to secure resources, 12 per cent said that it has gotten worst.

The survey, which included responses from 92 LGPS members, also revealed that while 65 per cent of respondents believe they have the right staff in place to carry out their day-to-day job, nearly a quarter (23 per cent) do not feel that they have the right staff in place, with more than three quarters (78 per cent) attributing this to the difficulty in recruiting staff.

In addition to this, the research found that most LGPS members continue to believe that the main legislation or regulatory requirements that govern their work are overlapping between different organisations/regulators (66 per cent), with a similar proportion finding it causes them confusion (63 per cent).

More than half (54 per cent) also suggested that the legislation/regulatory requirements are too complex to execute, marking a 6 per cent year-on-year increase, while 43 per cent continue to feel legislation/regulatory requirements are hindering them from doing their job effectively.

Simpler and clearer regulations was also top of the list for LGPS representatives when asked what changes in the scheme they would like to see.

Regulation and resource were not the only area of concern though, as whilst 59 per cent of respondents felt the current governance set up of the LGPS works, 17 per cent feel it does not work.

When questioned about the topics government and regulators should be focusing on, three-quarters (74 per cent) identified good governance as a priority, followed by responsible investment and stewardship (55 per cent), and pensions dashboards (41 per cent), while only 18 per cent feel they should focus on pooling.

Broader concerns around pooling were also raised, as the research found that few (4 per cent) feel that the pools need to be consolidated, while 49 per cent disagreed and almost half (46 per cent) were undecided.

In addition to this, over half (57 per cent are concerned about the potential for further mandatory consolidation of pools, with less than one in five (17 per cent) not concerned.

And whilst the majority (85 per cent) of respondents said their fund has a good relationship with their employers, more employers have said they wish to leave due to simplification/consolidation of different types of pension scheme (47 per cent) than in 2021 (31 per cent).

Plans to encourage all LGPS funds to transfer their assets into LGPS pools by March 2025 are currently under consultation, after the Chancellor announced plans to "accelerate" LGPS pooling as part of his Mansion House speech.

Commenting on the findings, PLSA head of DB, LGPS and investment, Tiffany Tsang, stated: “As the largest funded defined benefit (DB) pension scheme in the UK, the LGPS is in good financial health and employees report having a positive experience of working within it.

“However, a swathe of regulatory initiatives in recent years mean the LGPS is increasingly being asked to do more with its limited resources, with our surveys showing LGPS funds find it particularly challenging to recruit.

“The PLSA is committed to engaging with government and key stakeholders to draw attention to these findings and the challenges being felt within the LGPS.”

Early findings from the research were previously shared by the PLSA at its Local Authority Conference in June, alongside a regulatory map to help LGPS professionals understand the sector’s complexity.

The LGPS is the largest funded DB pension scheme in the UK, and one of the biggest in the world, with recent figures showing that it has 7.1 million members, over 15,500 employers, and assets of over £425bn.

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