Latest Public Sector News


Pension schemes ‘time-bomb’ in London

An urgent review of London councils’ pension schemes is needed, according to a report by the Pensions Institute.

The schemes represent a “ticking time-bomb”, the report states, with trustees of the schemes found to be delaying recovery plans to save money. It wants Department for Communities and Local Government to review its own procedures to tackle the problem.

The widening gap between the costs of providing retirement incomes for workers and the available funds to do so is due to rising life expectancy rates, as well as falling investment returns.

The Public Services Pensions Bill currently going through Parliament could reduce the annual cost to taxpayers by a third, the report suggests.

The report says: “The London local government pension schemes in aggregate represent a ticking time-bomb for London council tax payers and very likely for national tax payers too. But, we believe it is possible for this time-bomb to be defused if the relevant stakeholders act now.”

A merger of pension schemes could save administration costs, but has so far been blocked by councillors and trade unions.

Mike Taylor, head of the London Pensions Fund Authority, told the Guardian: “This report pushes us further forward in the debate over the merger of local authority funds.”

Separate research by MetLife Assurance shows that nearly three quarters of pension scheme trustees surveyed across the country (71%) feel that the amount of legislation and pace of change in the pensions industry is too much, with nearly half (47%) saying they are hindered in performing their duties

The company’s CEO, Wayne Daniel, said: “It is concerning that some trustees feel they are being hindered in performing their job as a trustee, in particular due to the amount of legislation and pace of change. The fact that trustees of larger schemes worry about being able to perform their duties  may hinder their efforts to find appropriate de-risking strategies that fit the unique needs of their scheme.

“There is an evident lack of knowledge by trustees of how to prepare for a de-risking exercise even though two-thirds are planning to de-risk the company pension scheme in the next five years.”

Tell us what you think – have your say below, or email us directly at


There are no comments. Why not be the first?

Add your comment



public sector executive tv

more videos >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

public sector focus

View all News


Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >


Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

New rules to change the future of Social Value

05/06/2019New rules to change the future of Social Value

The government has announced the introduction of new rules to change the future of social value and make the way housing developers stump up the money for infrastructure both ... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >