London Pensions Fund Authority
Introduction
The LPFA was established under the London Government Reorganisation (Pensions etc.) Order 1989 to be the administering authority within the Local Government Pension Scheme (LGPS) Regulations for the former Greater London Council (GLC) Pension Fund. The London Pension Fund has 65,000 scheme members and over 200 employers (including many voluntary and charitable bodies). The total value of the Fund was some £2.25 bn at the start of 1997. Further powers and duties have been transferred to the Authority, mainly in relation to former GLC and ILEA compensation payments and residual employer liabilities for which there is a power to levy on all borough councils in Greater London. The Authority is responsible to the Secretary of State for Environment, Transport and the Regions who can appoint to the Board between 7 and 11 Members. At least half of the Members excluding the Chairman, are appointed following consultations with local government representatives in London. There are currently ten members on the Board, including 2 appointed from amongst the Fund membership.
The LPFA aims to administer the London Pensions Fund, and associated functions, both efficiently and cost effectively through the achievement of:
- defined standards of service, which engender good customer relationships and generate a keen service image;
- a level of scheme membership and services which maximises cost-effectiveness;
- an investment strategy suited to the specific liability profile of the Fund, which balances the need to achieve high returns whilst not taking undue risks;
- economic management which makes proper use of resources and develops "good employer" practices;
- financial prudence in the conduct of its budgeting, monitoring, review, and operational procedures;
and to secure the most effective role for the Authority in the administration of local government pensions.
| | Number of Staff | | | Expenditure (£m) |
| 1995/96 | 67 | | 1995/96 | 107.546 |
| 1996/97 | 67 | | 1996/97 | 111.429 |
| 1997/98 | 67 | | 1997/98 | 115.392 |
Copies of Annual Report and Accounts and Corporate Plans are placed in all the main London libraries for reference purposes. They can also be inspected, along with Reports to Fund Members, all Codes of Conduct and Best Practice and the Register of Interests, at Dexter House. Extract copies can be supplied on request.
Achievements in 1996/97
- Watson Wyatt 'Scheme of the Year' Award (at the Pensions Management Awards).
- Report of the Year (at the Public Treasurer Investment Awards).
- Development of a Quality of Service Indicator which takes into account best practice, on-time performance, accuracy and customer complaints and satisfaction levels.
- Significant input to the national debate on the future of the LGPS.
- Achievement of the Investors in People Standard and the 1997 Portfolio Award (Public Sector).
- Maintaining and improving the high standards for which LPFA was awarded a Charter Mark in 1994.
Plans for 1997/98
- Review LPFA performance standards in the light of the requirements of the new LGPS.
- Revise administrative arrangements to implement the new LGPS.
- Update competitive benchmarks to reflect latest national statistics as a guide for cost improvements.
- Review the policy on corporate governance in the light of emerging developments nationally.
- Continue market testing through competitive tendering.
- Investigate the appropriateness of securing ISO 9000 series accreditation.
- Prepare and submit a successful Charter Mark renewal application.
- Develop new customer initiatives in communications and accountability
- Issue a statement of Investment Principles to supplement existing codified procedures and strategy.
Key Performance Targets
Since 199293, LPFA has implemented a number of key initiatives to improve the efficient and effective running of the organisation. These initiatives have three main thrusts:
- to improve standards and quality of service;
- to sharpen management and working methods; and
- to reduce unit costs.
The setting of targets for a range of indicators and the publication of achievements against those targets annually in the LPFA Efficiency Plan is a key discipline the LPFA has adopted in pursuance of these goals.
Key Performance Targets
|
| 1994/95
| 1995/96
| 1996/97
| 1997/98
|
Key Measure
|
Set
|
Achieved
|
Set
|
Achieved
|
Set
|
Achieved
|
Set
|
Management Costs (£' 000)
|
*
|
4,340
|
4,209
|
4,196
|
4,340
|
4,191
|
4,341
|
Staffing Costs (£' 000)
|
*
|
2,186
|
2,088
|
1,982
|
<2,186
|
1,902
|
<2,186
|
Total Costs (% of Fund value)
|
*
|
0.25
|
0.28
|
0.23
|
<0.25
|
0.20
|
<0.25
|
Investment Costs (% of Fund value)
|
*
|
0.11
|
0.11
|
0.10
|
<0.10
|
0.09
|
<0.10
|
Administration (£ cost per customer)
|
*
|
45.00
|
45.00
|
43.00
|
42.31
|
39.42
|
41.46
|
Staff/Customer Ratio (1:)
|
*
|
1248
|
1473
|
1422
|
>=1400
|
1446
|
>=1400
|
% of Cases completed on time
|
90
|
97
|
94
|
99
|
98
|
99.7
|
99
|
Complaints (% response within 5 days)
|
*
|
98
|
N/A
|
96
|
99
|
95.5**
|
99
|
Contributor Membership
|
*
|
17,075
|
N/A
|
17,792
|
18,100
|
18,357
|
18,371
|
* Targets for most of the current indicators were set first in 1995-96.
** Under performance due to delay on only 3 complaints out of a total of 43.
|
|
