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Pension Fund Scramble: Government Deadline Looms
11 Jan
Summary
- Northern LGPS must overhaul its board by March.
- New FCA-approved management team is urgently sought.
- The fund manages £70 billion for nearly 900,000 workers.
The Northern LGPS, one of Britain's largest town hall pension funds with £70 billion in assets for nearly 900,000 employees, is urgently seeking a new management team. A government-imposed deadline of March is fast approaching, requiring the fund to comply with new 'pooling' regulations.
These rules mandate the creation of six larger 'mega-funds' from the existing eight Local Government Pension Scheme (LGPS) pools. The goal is to enhance investment growth through economies of scale, mirroring successful models in countries like Canada and Australia. All new leadership must be approved by the Financial Conduct Authority (FCA).
The Northern LGPS, which previously resisted the changes due to concerns about increased costs, is now actively recruiting for key roles. This includes a new chairman, chief executive, chief risk officer, chief investment officer, and non-executive directors, replacing the current oversight board of councillors and union officials.
