1 week Ago
Councils in race to meet mega-funds pension deadline By PATRICK TOOHER Updated: 21:50, 4 January 2025 e-mail View comments Two of Britain's biggest local government pension funds are exploring mergers with other town hall retirement schemes in a race to meet a government deadline about their future. In her Mansion House speech, Rachel Reeves unveiled plans to create pension 'mega-funds' to invest billions of pounds in UK firms and infrastructure to boost growth. They include moves to unite the sprawling local government pension scheme (LGPS), which has £355 billion spread across 86 councils.
These funds – which invest in shares, bonds, property and other assets – pay the pensions of six million workers. The LGPS has eight 'pools' but the Chancellor wants them to consolidate so they have the economies of scale to invest like public sector funds in Canada and Australia. Crucially, she has insisted all pools be regulated by the Financial Conduct Authority.
The future: Rachel Reeves has unveiled plans to create pension 'mega-funds' to invest billions of pounds in UK firms and infrastructure to boost growth RELATED ARTICLES Previous 1 Next How to boost your state pension by up to £149,000: It's 'one...
Pensions in 2025: What savers need to know on shock IHT...
Share this article Share HOW THIS IS MONEY CAN HELP How to choose the best (and cheapest) stocks and shares Isa and the right DIY investing account Two of the biggest pools – Access, formed of 11 councils in south-east England, and Northern LGPS, which covers Greater Manchester, West Yorkshire and Merseyside – do not have FCA authorisation. Both want to set up their own authorised structures but have also approached the other regulated pools about merging. The Government's consultation closes next week.
DIY INVESTING PLATFORMS AJ Bell AJ Bell Easy investing and ready-made portfolios Learn More Learn More Hargreaves Lansdown Hargreaves Lansdown Free fund dealing and investment ideas Learn More Learn More interactive investor interactive investor Flat-fee investing from £4.99 per month Learn More Learn More Saxo Saxo Get £200 back in trading fees Learn More Learn More Trading 212 Trading 212 Free dealing and no account fee Learn More Learn More Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting.
This does not affect our editorial independence. Compare the best investing account for you Share or comment on this article: Councils in race to meet mega-funds pension deadline e-mail Add comment Some links in this article may be affiliate links. If you click on them we may earn a small commission.
That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
More top stories.
