From: Government Actuary's
Department
We supported the government as part of wide range of pension
reforms announced by the Chancellor. Our advice included
supporting government with analysing trends in UK pension fund
investment and preparing for the consultation on the Local
Government Pension Scheme (LGPS).
This support formed part of a wide range of pension reforms
announced by the Chancellor at her Mansion House speech on 14
November.
Fit for the future
A consultation from the Ministry of Housing, Communities and
Local Government seeks views on
proposals designed to strengthen the management of Local
Government Pension Scheme investments. The proposals relate to
the topics of asset pooling, local and regional investment, and
scheme governance.
GAD actuary Memet Pekacar was part of the project team. He said:
“As the actuarial experts in government, GAD was able to support
government with its decision-making process.
“We provided insight with our knowledge around pensions and
investment, and the experience we have from working with pension
scheme boards, employers, advisers and members.”
Credit: Unsplash
GAD's analysis
Following the Chancellor's speech, the Department for Work and
Pensions (DWP) published a
report which combines DWP research, along with
analytical support from GAD.
GAD undertook the analysis to assess the impact of changing asset
allocations on outcomes for defined contribution pension members.
Using modelling techniques, GAD illustrated a range of projected
defined contribution (DC) pension fund values under different
investment scenarios.
Our analysis showed that a greater level of exposure to private
markets may deliver slightly improved outcomes to members.
However, there is considerable uncertainty, particularly with the
assumptions for projected future investment returns.
GAD's investment lead Christophor Ward was part of the analytical
team. He added: “We informed the government of possible options,
assumptions and outcomes related to DC pension investment
approaches.”
