Did we open the door to this: The government wants to merge the UK's 86 council pension schemes into a handful of "pension megafunds".

[posted]

I'm sure most LG Pension Schemes are still Defined Benefit in some nature and it's not clear if they will be using the legislation created by the introduction of the CDC.

Sounds like they just want to pool the funds together... rather than the individual outcomes

https://www.bbc.co.uk/news/articles/c4gve4d8jljo

[RobertT]

They just want to make the funds more economical and to encourage more investment in the UK.

It's not related to the CDC legislation, although the idea behind how they manage the investments is similar – One big pot is better than lots of small ones.

[posted]

They just want to make the funds more economical and to encourage more investment in the UK.

It's not related to the CDC legislation, although the idea behind how they manage the investments is similar – One big pot is better than lots of small ones.

Yes administratively cheaper and should reduce costs but as one of the commentators says in the article, will it change where and how the funds are invested and the impact on returns.

[milly]

Looks like Ed Minibrain can now fund GB Energy.
Lol!

[RobertT]

Yes administratively cheaper and should reduce costs but as one of the commentators says in the article, will it change where and how the funds are invested and the impact on returns.

Rachel Reeves wants UK pension funds to invest in UK infrastructure projects. Which will obviously change where some of our pension cash is invested.

Those people with DB pensions won't be affected because their benefits don't change with investment returns.
The last time I heard, about 90% of the UK's DB schemes are in surplus anyway. A situation which has raised questions as to what should happen to that money, and also whether schemes should transfer their liabilities to insurers.
Both potentially pertinent to the RMPP.

DC pension returns could be affected if they're forced to invest in other areas, but nobody really knows how any investment will perform in advance.

More info on RR's plans here: https://www.gov.uk/government/news/pens ... mic-growth

[yubin282]

They just want to make the funds more economical and to encourage more investment in the UK.

It's not related to the CDC legislation, although the idea behind how they manage the investments is similar – One big pot is better than lots of small ones.

Yes administratively cheaper and should reduce costs but as one of the commentators says in the article, will it change where and how the funds are invested and the impact on returns.

It also gives the shady fund managers more to steal.