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Hands Off Council Pensions Funds

Monday, October 5, 2015

Local Government Pension Funds Are Not Invested In Infrastructure Projects Because Risks Outweigh Returns Says GMB

Mr Osborne needs to remember these are council workers' pension savings that need to be invested as efficiently as possible and they are not to be used as politician’s playthings says GMB.

GMB, the union for local government workers, commented on the announcement that Mr Osborne plans to combine 89 local authority pension funds in England and Wales into six regional funds in the hope it will encourage them to invest in major infrastructure projects.

Brian Strutton, GMB National Secretary, said "Combining council workers' pension funds will not lead to more investment in UK infrastructure unless government underwrites the rate of return available.

The only reason more of the £200 billion of Local Government Pension Scheme (LGPS) assets are not invested in infrastructure is because the risk outweighs the returns.

Mr Osborne needs to remember these are council workers' pension savings that need to be invested as efficiently as possible, they are not to be used as politician’s playthings."

End

Contact: Brian Strutton 07860 606 137 or 0208 947 3131 or Kier Greenway GMB Pensions Department 0207 391 6700 or GMB press office 07974 251 823 or 07921 289880

 

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