Local government pension scheme (LGPS) leaders have urged ministers to stop piling on new demands and “leave us alone” to get on with the job, saying the sector has already proved it can deliver.
Speaking at Pensions UK local authority conference this week, chair of the LGPS Scheme Advisory Board Roger Phillips said local authority pension funds have spent the past decade coping with major reforms while continuing to pay pensions, manage investments and serve members effectively.
Despite the pressure, he said the sector was in a “good place” and that the government should trust the scheme’s existing governance and fiduciary framework.
He added that, in essence, the government should “just leave us alone for a bit”, describing local government as “pretty darn good” and capable of handling its responsibilities without constant intervention.
His comments came amid sustained policy pressure on the LGPS, including pooling, the McCloud remedy implementation, dashboard preparations and debates over fiduciary duty.
Phillips said the funds have repeatedly been required to absorb significant changes from the government, often with little time to prepare and limited recognition of the practical impact on funds and administering authorities.
One of the biggest challenges being the Fit for the Future reforms, which he described as “all encompassing”.
The view was echoed by Jo Kempton, head of Lincolnshire Pension Fund, who highlighted the scale of work facing both funds and pools as consolidation progresses.
Prior to the reforms, Lincolnshire and its investment pool, Border to Coast Pensions Partnership, had reached a “very good position” with a defined long-term strategy, she said. However, that vision must now be revisited to accommodate new joiners and evolving government expectations.
She said: “We need to step back, take a look at the funds coming into Border to Coast – what’s been done well, what would we have done differently, how can we make sure that we build exactly what we need going forward, so hopefully that government will go away and just leave us alone to do it.”
Beyond consolidation, ministers have also called on the LGPS to support local investment and UK growth.
However, Phillips said any wider policy ambition around pushing LGPS to invest more in local growth must be judged against proper risk and return criteria rather than political enthusiasm.
He argued that the scheme has already been investing in the UK and should receive more credit for that activity. He has acknowledged that LGPS needs to communicate its successes more clearly, but cautioned against turning the pension system into a tool for short-term political objectives.
Ultimately, according to Phillips, LGPS needs a steadier period in which to focus on delivery rather than continual change.
