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A well-run Local Government Pension Scheme fund (LGPS) needs you to manage a large and diverse group of members and stakeholder interests.

 

You’ll also be managing your LGPS fund while setting and controlling its funding, investment and risk strategies.

 

At Mercer, our approach can be adapted to ensure you effectively manage the risk in, and cost of, your fund so that you put your members and stakeholders first.

 

Mercer’s local government pension scheme (LGPS) advisory service

Managing LGPS benefits means dealing with a large and diverse group of employers and engaging with all your other stakeholders, including Local Pension Boards, the National Scheme Advisory Board, Asset Pools and the Government.

 

You’ll need to do all of this while setting and controlling your fund’s, investment and risk strategies.

 

Mercer’s dedicated LGPS team provides clients with clear, outcomes-driven advice and services. We have a team of more than 80 experienced consultants, analysts and specialists, who together provide LGPS funds and government pension schemes with dynamic solutions.

 

We also provide advisory services directly to employers that participate within the LGPS through our separate employer advisory teams.

 

Mercer’s Local Government Pension Scheme (LGPS) service: The Facts

 

£107bn

LGPS assets under
Mercer advisement

 

2.2m

Members in LGPS funds
Mercer advises

 

50%

of all LGPS have chosen Mercer to help them meet their challenges

Mercer’s Local Government Pension Scheme (LGPS) advisory service


The specialist areas where we can provide you with support are:
 

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    Actuarial, LGPS risks and benefits

      


    Our expert actuarial and benefit teams provide the following services to Local Government Pension Scheme funds:

    • Actuarial valuations, including Funding Strategy Statement reviews, and termination valuation assessments
    • Interim funding reviews and inter-valuation employer contribution assessments
    • Online employer funding monitoring and asset tracking (using PFaroe)
    • Full risk advisory services, including financial risk monitoring, bespoke employer investment “bucket” strategies and flightpath “trigger” and hedging frameworks
    • Pension fund accounting disclosures and advice for funds and their employers
    • Employer covenant and Deferred Debt Arrangement exit risk assessments
    • Cash flow projections and budgetary planning
    • Demographic analysis, data quality improvement plans and liability impact analysis
    • Liability risk transfer programmes including buy-ins and bulk transfers
    • FCA authorised and regulated AVC reviews, monitoring and advice via our LGPS AVC Club
    • Individual member calculations and support on benefit design changes e.g., McCloud
    • Fund and Employer policy development, consultation and communication
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    Investments

      


    We provide comprehensive advisory services, training and tools to LGPS Funds (and Asset Pools) across the full spectrum of investment areas, including:

    • Investment Strategy (including asset-liability modelling)
    • Tactical Asset Allocation
    • Private Markets and Alternatives research
    • Manager selection, performance monitoring and transition management
    • Cash flow modelling and monitoring
    • Technology solutions (e.g., MercerInsight, Strategic Research Community)
    • Asset pooling support (e.g., Portfolio Mapping Analysis)
    • Responsible investment: including carbon footprint analysis, strategic climate change analysis, legislative guidance, support in TCFD reporting, manager ESG ratings and net zero roadmap design
    • Investment governance - such as a drafting of investment strategy statements, responsible investment policies
    • Ad-hoc projects, for example treasury management solutions
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    Governance

      


    We provide a wide range of governance support services, including:

    • Working with Pension Fund Committees and Local Pension Boards to assess knowledge and skills, and consider training needs
    • Planning and delivery of stakeholder training plans and education sessions
    • Development of focused and well defined pension fund business plans
    • Support on the use of risk registers and mitigating options
    • Operational support including project management activities
    • Support services in relation to TPR and Good Governance requirements
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    Administration projects

      
     
    • Backlog projects – our experienced LGPS administrators work with you to ring fence and clear your backlogs, particularly deferred, refund, aggregation and concurrent calculations, but can be extended to other calculations
    • Data Cleanse projects
    • Address tracing and mortality screening
    • Administration reviews – we can audit your structure, process and procedures

  • Specialist services

      

     

    • Review of pension fund and employer discretions within the LGPS

    • FCA authorised and regulated individual member financial advice, on matters such as pension tax planning and retirement planning

    • Standalone employer covenant assessments and analyses

    • Communication strategy development and implementation

    • Dedicated online training resources

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We understand the unique, significant, and complex challenges faced by Local Government Pension Scheme (LGPS) funds and are proud that half of all LGPS funds have chosen us to help them across our range of expertise.
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Nigel Thomas, Partner and Local Government Wealth Leader


LGPS – contact Mercer to find out how we can help

We understand the unique, significant and complex challenges faced by Local Government Pension Scheme (LGPS) Funds and are proud that half of all LGPS funds have chosen us to help them across our range of services.

 

To find out how we can curate our expertise to support you, please fill in the form below.


Our insights
 

Event

LGPS Sustainable Investment Conference 8 March 2023

Our experts and guest speakers discussed TCFD, levelling-up and biodiversity and natural capital investments to help LGPS Funds and Pools with the challenges they face.


Find out more
Article

LGPS: Equity protection strategies – De-stress don’t distress

Nick Page explains how making an equity protection strategy part of your strategic plans can help your fund tailor its risk and return profile to your specific needs.


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Article

LGPS: Setting a course to net zero

We held a webinar attended by representatives from 40 funds to discuss the road to net zero for LGPS funds and asked attendees three questions to gauge how ready funds are. The results produced a couple of surprises.


Find out more

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