Written question asked by Lord Hutton of Furness (Labour) on Tuesday, 7 January 2020, in the House of Lords. It was due for an answer on Tuesday, 21 January 2020. It was answered by Viscount Younger of Leckie (Conservative) on Tuesday, 21 January 2020 on behalf of the Ministry of Housing, Communities and Local Government.

Local Government Pension Scheme

Question: To ask Her Majesty's Government what assessment they have made of the cost savings resulting from the use of pooled investment funds in the Local Government Pension Scheme.

Answer: In November 2015, the Government published criteria and guidance for the creation of pooled investment funds in the Local Government Pension Scheme (LGPS) in England and Wales, to be operational by April 2018. Eight LGPS asset pools have been established to manage the investments of the scheme.

Estimates provided by the LGPS pools indicate that across the scheme, total savings of around £155 million have been achieved over the period from 2015 up to March 2019. The pools have estimated total savings by 2033 at between £1 billion and £2 billion, with annual savings of up to £200 million.

Secondary information