On the 13 November, the Government announced that ‘Pension megafunds could unlock £80 billion of investment as Chancellor takes radical action to drive economic growth.’ The report goes on to say ‘The biggest pension reforms in decades will merge Local Government Pension Scheme assets and consolidate defined contribution schemes into megafunds’. These changes will free up money for local public services in the long-term and secure more than £20 billion for investment in local communities’.
Some of you have already asked how this might relate to the Armed Forces Pension Scheme (AFPS). To clarify, the AFPS operates as a Defined Benefit (DB) pension scheme funded through taxation, as opposed to Defined Contribution (DC) pension schemes that rely on investment performance. We monitor any policy debates/discussions relating to both DC and DB schemes and their potential relevance to the AFPS and engage with the Government of the day as appropriate. Our policy position relating to the AFPS is well rehearsed and can be read here.
You can read the Chancellor’s Mansion House speech delivered yesterday here.
