Councils in London are looking into plans to create a pooled pension fund to reduce administration costs and divert up to £2.25 billion to infrastructure projects in the capital.
The pensions arrangement would hold up to £30 billion of assets, and is modelled on the infrastructure of Canada’s Ontario Municipal Employees Retirement System (OMERS). Members of the London councils met in March to discuss the proposals.
A spokeswoman for London Councils said: “Following a leaders’ committee meeting at London Councils in March, there was a commitment to explore further the proposals for the creation of a London Pensions Mutual, as a pan-London investment fund, from the amalgamation of the pension funds of the London Pensions Fund Authority (LPFA), Transport for London (TFL), London boroughs and the City of London Corporation. Further work will be reported back this summer.”
For more information on local authority pensions arrangements