How fit for the future are we?
Posted on March 4th, 2025
In a debate on the future of the LGPS, we should never lose sight of the value it delivers. It costs around half that of the unfunded public sector Defined Benefit (DB) schemes, while it delivers each £1 of retirement income 50% cheaper than Defined Contribution (DC) schemes. The LGPS also delivers wider benefits for society, providing significant capital to both business and infrastructure, helping to drive economic growth and improve local communities. In summary, the LGPS not only secures individual retirements but also acts as a vital cog in the machinery of the UK and global economy. It is therefore essential that the LGPS remains ‘Fit for the Future’.
Since the early days of pooling, the Border to Coast partnership has been committed to delivering a strong system that enables Partner Funds to pay pensions affordably and sustainably over the long term. In our first strategic phase, our partnership focused on building a resilient pool company with the investment capabilities to implement Partner Funds’ investment strategies. The Government has now asked how we will meet the minimum standards set out in the recent consultation.
Thanks to our Partner Funds’ commitment to pooling and shared vision over the last decade, and the foundations laid through the development of our 2030 Strategy, we start from a strong position to meet these standards. Indeed, in several areas we go beyond them, taking inspiration from international best practice. In this regard Border to Coast:
- is a Financial Conduct Authority (FCA) regulated entity, authorised to deliver (in-house) investment management and advice, with the investment capabilities to manage (through pooled vehicles or management of legacy arrangements) 100% of Partner Funds’ assets.
- has an active UK local investment programme which will continue to evolve as Government policy on devolution and the role of the LGPS develops.
- has a strong, experienced, highly engaged, and externally recognised team of investment professionals firmly committed to and solely focused on delivering for the LGPS.
- has an established approach to working collaboratively and effectively with Partner Funds.
Our collective progress has required a high level of commitment and dedication from across our partnership. This has been possible due to our culture – with Partner Funds and within Border to Coast. Quite simply, we share a belief that we can achieve more together than we can individually. This has enabled our partnership to thrive. Supported through a clear governance framework, we have worked in a constructive manner. With agility and flexibility, we’ve been able to navigate the challenges over the decade since pooling policy was announced. We remain committed to this partnership approach.
Getting here has required a great deal of work, and while we acknowledge that there will be new challenges as the landscape evolves, we’re confident and ready. I know that with the support and commitment of our Partner Funds, we can continue to ensure the timely and affordable payment of pensions of the millions of members of the LGPS.
Rachel Elwell, CEO, Border to Coast
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