In what appears to be the biggest reform to the LGPS fund, Rachel reeves wants to move the 86 smaller and individual funds we have, to what is being described as 'Pension megafunds'. Allowing our funds, currently worth close to £500 billion, to invest £20 billion into infrastructure and jobs.
Reeves believes that this amalgamation of pension funds, will generate good returns for British savers, that is us who are in the pension scheme, it is our money. Critics say that it may also put our money at risk.
Reeves isn't the first politician that wanted to access our pension pots, the Tories were all over it but feared a challenge. This Labour government with a huge majority, seems like it has the attitude to do what it likes.
If under these proposals, vast extra income could be generated, then the Branch would want to see a reversal of the erosion of the LGPS that we saw in 2014, when we moved from a final salary scheme to a career average scheme. The 2008 changes saw an end to automatic lump sums being awarded on retirement.. Maybe the extra funds should be given to LGPS pensioners to afford them a better retirement?
The Branch will of course be scrutinising the proposals and what the possible affects could be for us. In the meantime, read the articles and let the Branch know your position. This will be fed back to our Cambridgeshire scheme administrators and to Unison National.
More at the links below:
Pension megafunds could unlock £80 billion of investment as Chancellor takes radical action to drive economic growth - GOV.UK
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