05-06-2025
In response to the Ministry for Housing, Communities and Local Government (MHCLG) Fit for the Future consultation on the Local Government Pension Scheme (LGPS), CIPFA Pensions and Treasury Advisor Nicholas Harvey, said:
“CIPFA supports the core principle of improving decision-making within the LGPS through better skills and knowledge. However, how this is delivered is crucial. Training should be provided by organisations that are demonstrably independent and free from conflicts of interest.
“In addition, we are particularly pleased to see Good Governance proposals progressing. Adjusting the review timetable will ease pressure on administering authorities, and we strongly support efforts to ensure that independent advisors are truly independent.
“However, CIPFA remains concerned that the proposed March 2026 deadline for asset pooling may not be realistically achievable for all Funds.
“Potential conflict of interest issues relating to Pension Committee members making local investment decisions also appear not to have been fully addressed, and CIPFA urges further clarity on this matter.
“CIPFA welcomes the emphasis on reporting transaction costs but believes that the existing Cost Transparency Initiative, led by the Pensions and Lifetime Savings Association (PLSA) and already adopted by many Funds, should be used as the sector standard to avoid duplicating reporting frameworks.
“We welcome continued collaboration with MHCLG and the Scheme Advisory Board, via its work with the joint Compliance and Reporting Committee and remain committed to supporting the effective delivery of these reforms.”
Notes to editor
- Read MHCLG’s Fit for the Future consultation
- For media enquiries, please contact the CIPFA Press Office: press@cipfa.org