The Pathfinder Programme identified the potential for a shared service among several of the pensions funds within the Local Government Pension Scheme (LGPS) in 2007. The following year, in discussion with the Scottish Government, the scope was broadened in recognition of the wider opportunity to rationalise and improve the LGPS across Scotland, with the opportunity for all eleven funds to be included in a research project that would identify improvements to the management of the LGPS.
In April 2009 a report was commissioned from Hymans Robertson to carry out research into current pensions management and opportunities for rationalisation and improvement. A final report on their findings and conclusions was produced in October 2009.
Following the initial high-level analysis in the report, COSLA Leaders endorsed a second phase of research in January 2010, following which a Lead Officer Steering Group was established to provide expertise and set the direction of the phase. The Group is made up of Directors of Finance, Heads of Pensions Investment and Administration, Director of Personnel, COSLA, SOLACE, Scottish Government and the Improvement Service.
Following extensive stakeholder consultation into the requirements of this second phase of work, consultants Deloitte were procured in November 2010 to carry out the necessary research.
Research has focused on the detailed modelling of options for improved investment and administration management, including considering the option of merging funds. Research into administration service delivery has also been undertaken, assessing service delivery levels, customer experience and costs. Deloitte produced an interim report of early findings and recommendation in April 2011, concluding that only minimal cost-savings could be achieved by merging funds and that this should not be considered further in the short to medium term. However several interim recommendations were made in terms of improvements that could be made to the management of the LGPS within the current eleven-fund framework, including the design and implementation of improved governance and oversight arrangements, standardisation of administration services and the review of the roles and responsibilities of pensions committees.
The final workstream of this phase is now being scoped-out by lead officers in-line with Deloitte’s recommendations. The research and design activities of this final workstream will form an Improvement Agenda that is anticipated as being ready for implementation, subject to approval by COSLA Leaders, in Autumn 2011.
More information
Recent project communications and information on upcoming meetings and events can be found via the links on the right.
For any further information, please contact Alexandra Ostroumoff-Croucher, Pensions Project Manager.
