UK – Peter Scales, the outgoing chief executive of the London Pension Fund Authority, says he regrets not achieving a merger of London’s myriad local government pension funds into a £20bn (€29.3bn) “super-fund”.
“My unfulfilled aspiration was to achieve a merger of the 34 separate local government pension funds in London,” said Scales, who is retiring from the £3.5bn LPFA at the end of the year.
“This would have created a super-fund in local authority terms of around £20bn last time I looked. But size of operation was not the issue, it was the ability to wipe out duplications, maximise expertise and skills and present a strong voice for London on pensions.
“To some extent we have sought to achieve that through collaboration and co-operation. LPFA has operated a strong policy of acquiring third-party administration through agency contracts.
“LPFA has achieved a lot in this way but could have done so much more as a single fund for London. I still believe that, despite political obstacles, such a merger would deliver significant financial economies and operating effectiveness.”
The LPFA is the largest Local Government Pension Scheme provider in London, with over 70,000 fund members.
Scales said in an interview with IPE Magazine that he’s keen to take on trustee-type or advisory roles when he leaves the LPFA.