Issue - meetings

GOVERNMENT RESPONSE TO THE CONSULTATION ON FUTURE OF INVESTMENTS IN THE LGPS

 

 

Meeting: 15/12/2023 - Surrey Pension Fund Committee (Item 83)

83 RESPONSE OF THE DEPARTMENT OF LEVELLING UP, HOUSING & COMMUNITIES TO ITS CONSULTATION ON NEXT STEPS FOR INVESTING FOR THE LGPS pdf icon PDF 167 KB

To provide details of the response of the Department for Levelling Up, Housing & Communities (DLUHC) to its consultation on the Next Steps for Investments for the Local Government Pension Scheme (LGPS).

 

Additional documents:

Minutes:

Speakers:

Neil Mason, LGPS Senior Officer

 

Key points raised during the discussion:

1.    The LGPS Senior Officer highlighted several areas of the report including:

  • The requirement of funds to comply or explain with the transition of all assets into pools by the end of March 2025.
  • The government target for pools to be at least £200 billion in asset size.
  • Government mandates on training and development for Committee members.  Currently Local Pensions Board members are required by regulation to have an element of knowledge and understanding; this will be extended to members of the Committee.
  • Pension funds will be required to provide plans in their investment strategy statements as to how they will meet a 5% commitment to Levelling Up investments which broadly speaking is investments in UK opportunities in private market assets.
  • The government will require pension funds to consider how they would meet a 10% allocation to private equity in their asset allocation.

2.    A Member asked about the governance arrangements for Border to Coast and what member representation there was.  The Chairman responded that there was a representative of the Local Pension Boards on the Border to Coast Joint Committee. He also pointed out that as the pools got bigger, then the impact of each Administering Authority would become diluted.  The LGPS Senior Officer stated that each Administering Authority was also represented on the Company’s Board.

3.    A Member asked if the 5% would be mandated or was guidance.  The LGPS Senior Officer explained that Government was proposing to clarify this in the Regulations, but the 5% was not mandated.  However, if not compliant then this would need to be explained.  He felt that the Joint Committee and Border to Coast were both well positioned in dealing with the Government request.

 

Actions/ further information to be provided:

None.

 

Resolved:

That the report and annex be noted.