Award winning pensions correspondent Josephine Cumbo wrote an article in the Financial Times which covered our report from Michael Johnson on the ongoing crisis in the Local Government Pensions Scheme.
“The LGPS is one of the largest defined benefit pension schemes in the world, with 5.4m former and current town hall workers relying on the fund, which is backed by local taxpayers.
But a report by the Centre for Policy Studies, a free market think-tank, said the LGPS’s assets had underperformed the major UK and global equity and bond indices over the decade to 2016.
At the same time, charges, including fund management and administration costs, as a slice of asset market value, more than doubled to £4.5bn, according to the report, published on Wednesday.
In addition, the analysis estimated that the fund was hit by hidden charges, such as performance fees for alternative assets fund managers, of between £3.6bn and £4.6bn over the decade, pushing total fees to around £9bn.”
Read the full article (£) by visiting the FT’s website.
Date Added: Wednesday 15th February 2017