Lancashire-London pension partnership approved

The merger of the Lancashire County Pension Fund (LCPF) and London Pension Fund Authority (LPFA) has been approved by the Financial Conduct Authority (FCA).

The two funds will join together to form the Local Pensions Partnership (LPP), pooling around £11 billion of assets.

Despite merging assets and liability, the two funds will still remain separate and independent. The scheme hopes other Local Government Pension Schemes will join the initiative in the future, following Chancellor George Osborne’s wishes to pool together local government pensions.

Michael O'Higgins, LPP chairman, said: "The pool will lead to lower costs, both in administration and fund management. It is also intended to generate higher investment returns.

"Our new name underlines the fact that we are open for business, and ready and able to work with other LGPS funds in developing this exciting proposition."