A better future for the LGPS
The charity experience
01 Dec 2017 - Estimated reading time: 5 minutes
What is the employer experience in the LGPS? This is the second in a series of briefing notes where we consider some of these experiences, how they affect the employers concerned, and what solutions might be available for funds to secure better outcomes for everyone. This month we consider charities...
As mentioned in our previous note, Hymans Robertson has carried out a unique analysis across nearly half the Local Government Pension Scheme in England & Wales, considering different employer experiences in the LGPS. This showed a multitude of individual stories affecting employers and their staff.
There are over 13,000 employer stories in the LGPS, and counting: the number grows with every academy conversion, outsourcing contract, and service delivery re-design. To date, these stories have emerged in occasional newspaper articles, employer accounts, or even insolvency details. However, we think it is time to take a step back and tell these stories before they finish, while there is still time to change the ending. The Government can play its part, through financing arrangements, backing of charities, etc. We know that SAB are looking at options around “Tier 3” employers such as charities and admission bodies. This is to be welcomed, provided this doesn’t simply move the LGPS problem elsewhere (as the colleges insolvency regime consultation did in effect).
We think it is increasingly untenable for LGPS funds to have a “one size fits all” approach to investment strategy. Whilst different funds may take different approaches, it is clear that re-considering investment and funding strategies in tandem, on an employer-focussed basis, will lead to better outcomes. We look forward to discussions with funds on what can be done.
Download our publication to read our Charity case study.