Enfield's pension fund is facing concerns over the centralisation of investment choices as a result of a government consultation on local government pension schemes (LGPS). The Enfield Council Local Pension Board met on Wednesday, 24 September 2025, to discuss the implications of the consultation, along with other key items related to the fund's management.
The 'Fit for the Future' government consultation proposes delegating investment strategy implementation and the appointment of investment managers to a pool, with a March 2026 deadline for transferring all listed and private market assets. This has raised concerns among some Enfield Council members about the reduction of local decision-making power. The proposed changes also raise questions about how participating authorities will monitor the London CIV (Collective Investment Vehicle), the need for procedures for KPIs and performance monitoring, and how to address the CIV if something goes wrong.
The London CIV is a collaboration between London local authorities to pool their pension fund assets and achieve economies of scale in investment management.
At the Pension Policy and Investment Committee (PPIC) meeting on 30 July 2025, Councillor Smith expressed strong concern over the immersive proposal of reducing local decision making and the idea of centralization.
Councillor Skelton agreed with this sentiment. While Enfield Council can specify a broad investment class and allocations to local investments, the London CIV will ultimately decide on the exact investment.
The board also noted the minutes of the PPIC meeting held on 30th July 2025, which included a discussion of the government consultation and the endorsement of triennial valuation assumptions. The committee endorsed the assumptions to be used in the 2025 triennial valuation. Concerns were raised about increasing the discount rate from 4.4% to 5.9%, as an increased rate puts a lower value on the liabilities. It was also noted that optimistic assumptions about investment return might make employers think the fund is well funded, and they could lower their contributions.
