London Pensions Fund Authority

Lancashire and London Pensions Partnership to go ahead

Lancashire County Pension Fund Committee (LCPF) and the London Pensions Fund Authority Board (LPFA) today announced that they have formed their innovative £10bn Asset Liability Management Partnership, which will initially be known as the Lancashire and London Pensions Partnership (LLPP).

The LLPP will cover all aspects of pension fund management and be a fully-fledged pension service organisation, providing both jointly managed administration and pooled asset and liability management activities through newly created corporate structures. Crucially, both Funds will continue to maintain their local accountability with LCPF Pension Committee and LPFA Board maintaining control of key strategic decisions.

The formation of the LLPP will result in fee reductions, access to different types and a greater amount of direct investments, cost reductions in administration and more effective liability management.

Speaking about the decision, Susan Martin, Chief Executive, LPFA, said:
“We are excited to have taken this unprecedented step of pooling two of the largest pension funds in local government. It is our joint aim to significantly reduce the Funds’ combined costs – we estimate by over £32m within five years – and with the benefit of economies of scale, further reduce our respective deficits”.

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