WIREDGOV

GAD’s analysis has supported the government’s work around pension reforms, which were announced by the Chancellor during the Mansion House Speech.

We supported the government as part of wide range of pension reforms announced by the Chancellor. Our advice included supporting government with analysing trends in UK pension fund investment and preparing for the consultation on the Local Government Pension Scheme (LGPS).

This support formed part of a wide range of pension reforms announced by the Chancellor at her Mansion House speech on 14 November.

Fit for the future

A consultation from the Ministry of Housing, Communities and Local Government seeks views on proposals designed to strengthen the management of Local Government Pension Scheme investments. The proposals relate to the topics of asset pooling, local and regional investment, and scheme governance.

GAD actuary Memet Pekacar was part of the project team. He recently said:

“As the actuarial experts in government, GAD was able to support government with its decision-making process.

“We provided insight with our knowledge around pensions and investment, and the experience we have from working with pension scheme boards, employers, advisers and members.”

Credit: Unsplash

GAD’s analysis

Following the Chancellor’s speech, the Department for Work and Pensions (DWP) published a report which combines DWP research, along with analytical support from GAD.

GAD undertook the analysis to assess the impact of changing asset allocations on outcomes for defined contribution pension members. Using modelling techniques, GAD illustrated a range of projected defined contribution (DC) pension fund values under different investment scenarios.

Our analysis showed that a greater level of exposure to private markets may deliver slightly improved outcomes to members. However, there is considerable uncertainty, particularly with the assumptions for projected future investment returns.

GAD’s investment lead Christophor Ward was part of the analytical team. He added:

“We informed the government of possible options, assumptions and outcomes related to DC pension investment approaches.”