Newly elected chancellor, Rachel Reeves’ used her Mansion House speech on Thursday 14 November, to outline changes to the Local Government Pension Scheme (LGPS). The Mansion House speech sets out how government supports and grows the economy with the City of London, and the financial services sector. The Environment Agency Pension Fund (EAPF) is part of the LGPS.
The chancellor set out plans to introduce a new pensions bill next year that builds on outcomes from the July 2024 Pensions Review of the LGPS (and workplace defined contribution (DC) pensions schemes). The Pensions Review was set up with the twin objectives of improving pension outcomes for members and increasing investment in the UK. The focus of the review for the LGPS is to look at how tackling fragmentation and inefficiency can unlock the full investment potential of the wider LGPS, including through further consolidation.
The government is now consulting on proposals to put the LGPS on a clearer, firmer trajectory to scale and consolidation, as well as measures to improve scheme governance and investment. These proposals will seek to provide long-term clarity and sustainability, putting the scheme on the strongest possible footing for the future.
We have been supporting the Pension Review to build on the LGPS pooling framework that was introduced in 2015. The EAPF is part of Brunel Pension Partnership pool and the majority of our assets are currently managed through the pool. More details on this can be found in our Annual Report and Financial Statements.
View our Annual Report and Financial Statements.
We will continue to work with government and our partner Funds on the Pension Review and will be responding to the Government Consultation by 16 January. We will publish our response on our website.
Read the consultation 'Local Government Pension Scheme (England and Wales): Fit for the future'.
We wish to reassure members that the issues raised in the Mansions House speech relate to how LGPS assets are managed and invested. Whatever the outcome from the consultation and the subsequent pensions bill, this will not impact on your pension benefits.
Please also see these useful links below for more information.
Pension megafunds could unlock £80 billion of investment as Chancellor takes radical action to drive economic growth - GOV.UK
Mansion House 2024 speech - GOV.UK