The Government plans to look at restructuring local authority pension funds, and the announcement has been welcomed by the National Association of Pension Funds (NAPF).

Minister for local government Brandon Lewis said at the NAPF Local Authority Conference in Gloucestershire that the Government would consult on the principles of reform later on this year.

Joanne Segars, NAPF chief executive, which represents 72 funds in the Local Government Pension Scheme (LGPS), said: "The minister is right to open a wider debate on what funds can be doing, and to do so with an open mind and a clear call for evidence. We look forward to discussing this with our members and the Government.

"Clear and comparable data is needed to inform the debate, and a single annual report about the LGPS will help. Also, we are pleased to see the minister recognise the need for more radical reform of the LGPS investment regulations, as the NAPF has been calling for."

Also at the conference, the NAPF launched a report calling on the Government to facilitate an open debate on the case for local authority schemes to collaborate to drive efficiency.

The report also asks for an overhaul of LGPS investment regulations so that funds looking to diversify are not unduly restricted.

Segars said that local authority pension funds "have never been under so much pressure" because of the abolition of contracting out, auto-enrolment, and the introduction of a new scheme, which is pushing funds to focus on greater efficiency.

She added: "We have some good examples of collaboration, but we should ask if more can be done."

First published 21.05.2013

monique_simpson@wilmington.co.uk