UK Pension Fund Merger Gets Go-Ahead

The UK government has approved the merger of the Northumberland and Tyne and Wear local authority pension funds, the former being one of the smallest funds in the Local Government Pension Scheme (LGPS)  in England and Wales.

The decision follows a consultation on the merger that drew three supportive responses, with the Ministry of Housing, Communities and Local Government (MHCLG) today also saying on Thursday, May 14, that the joint application that had been submitted last year “set out a strong case for the merger of the two pension funds.”

The merger is intended to facilitate efficiencies and economies of scale, and will build on existing collaboration between the pension funds, which have been operating a shared pensions administration service for two years.

Both pension funds participate in the Border to Coast Pensions Partnership, one of the eight asset pooling vehicles in the LGPS. According to the MHCLG document, the plan has been for Northumberland’s assets to be transferred to the pool at the same time as they are aligned with Tyne and Wear’s new target investment strategy.

Full Content: IPE

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