History of the LPFA
The LPFA was established as a stand-alone public body on 31 October 1989, when all the functions, property, rights and liabilities of the London Residuary Body in relation to the Greater London Council’s Superannuation Fund were transferred to the LPFA.
Since then, the LPFA has developed into a dynamic and expanding business delivering third party services to other pension providers, become an active direct investor and is recognised as a thought leader in reforming the Local Government Pension Scheme.
Most recently, the LPFA:
- Announced the joint allocation of up to £500m to invest in infrastructure opportunities with Greater Manchester Pension Fund.
- Agreed to develop a £10bn Asset Liability Management Partnership with the Lancashire County Pension Fund. The ALM Partnership is a coherent, long-term asset and liability modelling platform from which assets and liabilities can be managed effectively. Investment flexibility allows LPFA to maximise investments on return-seeking assets to close the deficit, whilst meeting the cash flow requirements by investing in cash flow generating assets intelligently.
- Increased the security for the Fund by £311m in the event that an employer cannot meet their pension obligations.
- Delegated treasury management to the GLA, resulting in better cash management and £686k interest earned.
- Moved office resulting in on-going annual savings in excess of £350k.
- Was actively involved in discussions with Government across a number of issues including our consultation responses, and continue to have a leading voice in reforming the LGPS.
- Grew assets under management by £196m.
- Appointed Chris Rule as Chief Investment Officer.
- Implemented a buy and hold strategy resulting in greater in-house equity management and savings of c£3.3m per year.
- Carried out an FCA benchmarking exercise with a positive outcome.
- Formed £10bn ALM Partnership with Lancashire County Pension Fund.
In addition, the Authority was:
- Shortlisted for 'Best Scheme Governance’ and ‘Best Trustee Training Initiative of the Year' in the Engaged Investor Trustee Awards.
- Shortlisted as ‘Pension Provider of the year’ in the Workplace Savings and Benefits awards.
- Shortlisted for ‘Fund of the Year (above £2 billion)’ and ‘Corporate Governance and Engagement’ in the LGC Investment Awards.
- Shortlisted for ‘DB Pension Scheme of the Year’ in the Pensions Age Awards.
More on the history of LPFA
Continued investment in new technology and staff training has given the Authority leading edge systems and a well-trained, committed workforce. Since 1990, unit costs have been closely monitored and the LPFA continues to publish performance indicators and to seek out comparative statistics.
The LPFA's Corporate Management Team (CMT) and Board are established and respected voices in the UK pension community who lead debates for innovation and reform in the LGPS. LPFA has been at the forefront of the campaign for a sustainable local government pension scheme and is currently working towards the implementation of a new scheme in 2014. LPFA have also been encouraging the broader debate on how LGPS funds could be better structured and recently submitted a report following the Department for Communities and Local Government's call for evidence on the future of the LGPS.
The Authority's progress is reflected in the number of pension industry awards won. LPFA were shortlisted for a number of awards in 2015. Further high profile award wins include the Best Trustee Training Initiative Award at the 2013 Engaged Investor Awards; the award for Best Pension Scheme Over £1bn at the 2012 Portfolio Institutional Awards; and the LGC Quality of Service award in 2010 and 2011.
The LPFA recently obtained ISO accreditations in Information Security (ISO27001) and Environmental Management (ISO14001). Investors In People (IIP) Accreditation was first awarded in 1996 and has been retained ever since. In 2013, LPFA was awarded Bronze IIP status. In the same year, the LPFA was also for the first time accredited membership to the Institute of Customer Service.