This petition was submitted during the 2015-2017 parliament
Petition Debate in the House the Local Government Pension Scheme Investment Regulations
5 million people rely on the LGPS to pay their pensions. Government wants powers over LGPS investment funds, but they could gamble away members’ money on infrastructure projects. This is not allowed in any other UK scheme, including the MPs'. The LGPS must be invested in members’ best interests.
More details
Parliament must debate this issue and make the government accountable for these powers of intervention as any such direction may breach the law. Specifically Article 18 paragraph 3 of the EU Directive 41/2003 Institutions for Occupational Retire Provision: “Member States shall not require institutions located in their territory to invest in particular categories of assets.”
This petition is closed This petition ran for 6 months
Parliament debated this topic
This topic was debated on 24 October 2016
Government responded
This response was given on 19 April 2016
LGPS investment decisions will remain matters for local authorities, but councils should compare their investments in infrastructure against the example set by leading global pension fund investors.
Councils must invest local government pension scheme funds in the best interests of scheme members.
The Government has no intention of setting targets for infrastructure investment or removing the right of individual pension fund authorities to make their own decisions about strategic asset allocation. However, the pooling scheme assets announced at the July 2015 Budget will improve their capacity to invest in infrastructure, as well as achieving significant cost savings, while maintaining returns.
We have recently consulted on proposals to grant the Secretary of State a power of intervention which would further protect members’ and taxpayers’ interests. We expect that the power to intervene would be used exceptionally when there was clear evidence that a pension fund authority was not acting reasonably and lawfully, The Government is currently considering the responses to the consultation.
Department for Communities and Local Government
Related activity
MPs to debate petition on Local Government Pension Scheme Investment Regulations
The Petitions Committee has agreed to schedule a debate on this petition.
Before setting a date for the debate, the Committee agreed to ask for more information from the Government about its response to a consultation on this issue, to which it referred in its response to the petition.
We will keep you informed about what is happening.
The Petitions Committee is a cross-party group of MPs. It is independent from Government. You can find out more about the Committee on its website: http://www.parliament.uk/petitions-committee/role
You can follow the Petitions Committee on Twitter: @HoCpetitions