Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Latest NewsPay & benefitsPensions

Audit Commission finds London local authority pension schemes too small to deliver cost savings

by Mike Berry 2 Nov 2006
by Mike Berry 2 Nov 2006

London councils could save millions of pounds by making changes to their pension administration arrangements, an Audit Commission study has found.

Its report, Efficiency Challenge: costs of administering local government pension funds in London, published today, suggests a range of options for change.

These include creating one London-wide pension fund and establishing one pension authority to administer London council pensions while retaining individual councils’ funding arrangements.

Each of the 33 local authorities in London, including the City, has its own pension scheme. On average, each fund is worth £355m and has 13,000 members.

If all the schemes were combined the London-wide scheme would have 414,000 members and a value of £11.8bn.

High administration cost

The study found nationally, larger councils’ funds are administered at a much lower cost per member. The average administration cost per London council scheme member is £126 compared to only £44 for metropolitan council funds.

If London boroughs were able to reduce their total administration costs per scheme member to the level of the average metropolitan fund they would spend £34m less each year.

This scale of reduction would require significant change to take place and would therefore take time.

The study found these cost differences are due in part to the ‘London effect’ – the higher cost of salaries and office accommodation in London – but also to the smaller scale of the 33 London schemes. This means they do not benefit from the same economies of scale as other councils.

The chief executive of the Audit Commission, Steve Bundred, has written to key stakeholders to inform them of the findings of the report and the possible options available to them.

Bundred said: “London pension funds cost significantly more to administer than the national average. Our study has identified the reasons for the higher costs, and some options for securing significant savings.

“We hope that the 33 London boroughs, with the support of London Councils and the Department for Communities and Local Government, will use this report to challenge their current pension arrangements and move towards a more efficient system for the benefit of all their members and taxpayers.”

Avatar
Mike Berry

previous post
Pay structures are unfair to high-performing employees in the public sector
next post
North Sea divers accuse employers of resorting to bully-boy tactics in bid to end strike

You may also like

Law protecting frontline workers against violence takes effect

28 Jun 2022

Postal workers and doctors threaten strikes over pay

28 Jun 2022

Heathrow-based cabin crew set for 18% pay rise

28 Jun 2022

Attracting diverse young talent to the ‘secret’ world...

28 Jun 2022

Four-day week: what are the legal considerations for...

28 Jun 2022

Hire quality vs speed: Finding the perfect balance...

28 Jun 2022

Gender pay gap ‘won’t close until 2151’

27 Jun 2022

Third of employees living ‘payday to payday’

27 Jun 2022

PwC to award inflation-busting pay increase

27 Jun 2022

Barristers walk out in protest over fees

27 Jun 2022
  • NSPCC revamps its learning strategy with child wellbeing at its heart PROMOTED | The NSPCC’s mission is to prevent abuse and neglect...Read more
  • Diversity versus inclusion: Why the difference matters PROMOTED | It’s possible for an environment to be diverse, but not inclusive...Read more
  • Five steps for organisations across the globe to become more skills-driven PROMOTED | The shift in the world of work has been felt across the globe...Read more
  • The future of workforce development PROMOTED | Northumbria University and partners share insight...Read more
  • Strathclyde Business School expands its Degree Apprenticeship offer in England PROMOTED | The University of Strathclyde is expanding its programmes...Read more
  • The Search for Talent: Six Major Employer Pitfalls PROMOTED | The Great Resignation continues unabated...Read more
  • Navigating the widening “Skills Confidence Gap” in 2022, and beyond PROMOTED | Cornerstone OnDemand conducted a global study...Read more
  • Apprenticeships are the solution to your recruitment problems PROMOTED | Apprenticeships have the pulling power...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+