Rachel Reeves, Labour's Chancellor, has today (8 Aug 2024) outlined some possible changes to the Local Government Pension Scheme, that she would like to introduce.
The previous government had similar views on accessing the vast resources of the LGPS, and using it to fund major infrastructure projects. The last suggestion was that the LGPS could be used to fund HS2, a vastly over-priced but much needed improvement to our rail network. It is doubtful if investing in this project would have paid back any dividends, the private sector didn't show any interest, so we can assume they viewed it as a loss making project.
The use of our scheme's money needs serious consideration, as huge losses will ultimately impact on pension payments. Currently the LGPS invests in a range of areas and countries, the US market proving to be very cost effective as far as returns are concerned. Changing to investing in the UK could prove as beneficial, but only if careful consideration in what the scheme's money is being used for. Our returns need some form of guarantee.
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Needless to say, the Branch via our Unison Pensions rep, will be keeping a close eye on any developments. If you have concerns, please let the Branch know.
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