Nationwide survey reveals LGPS Funds’ high levels of confidence
18 Sep 2018
The results of the first ever nationwide survey of Committee and Local Pension Board members of the Local Government Pension Scheme, with input from over half the LGPS funds, has revealed compellingly high levels of confidence in all areas of responsibility, including investment performance and actuarial standards.
The survey, conducted by Hymans Robertson, the leading independent pensions and risk consultancy and leading adviser to the LGPS asked participants to rate their confidence levels across eight key knowledge areas. Representatives from the LGPS funds across the UK voted Investment Performance and Risk Management, and Committee Role and Pensions Legislation as the two most confident areas of their work with an overwhelming 91% of respondents feeling “mostly or completely confident” in the latter.
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Ian Colvin, Head of Benefits Consulting at Hymans Robertson comments on the findings:
“It is encouraging to see that there are such high levels of confidence across all areas amongst those managing these multi-billion pound funds. The last few years have seen great upheaval and change for public sector pension schemes with the introduction of pooling alongside increased regulatory scrutiny.
“Many LGPS funds have embraced these changes and their decision makers, perhaps as a result of increased training, feel equipped to cope with the new landscape with a renewed and welcome confidence.
“However, it is vital that these Funds don’t stop and say ‘job done’. There is no time, or reason, for complacency and committee and pension board members must continue to enhance their knowledge and skills and ensure that standards continue to increase. We would suggest that funds build their own individual confidence assessment results into committees’ and boards’ training plans in the coming 18 months. Specifically addressing areas that may have shown lower levels of confidence. It is important that decision makers aim not for peak knowledge in just a few areas, but have strong knowledge in all areas under their responsibility.”