It’s been three months since the Department of Communities and Local Government published its consultation, Local Government Pension Scheme: Opportunities for collaboration, cost savings and efficiencies.

The sweeping proposals to consolidate LGPS holdings and save £660m in costs annually have been met with mixed response. As stakeholders await the next phase of the consultation we reflect on the proposals and their wider implications for the LGPS.

Originating from a common desire to ensure the long-term viability of the LGPS, the Government’s proposals have been condensed to a two-pronged proposal aimed at reducing investment management fees and associated costs; firstly through the consolidation of all LGPS’s listed assets into passively managed collective investment vehicles, and secondly by using Collective Investment Vehicles (“CIVS) for holdings of alternative assets.