Management Consulting

Aon collaborated with the Chartered Institute of Public Finance and Accountancy (CIPFA) to address the challenges faced by Local Government Pension Scheme (LGPS) administering authorities in the UK. These authorities were under pressure to enhance the effectiveness of their pensions administration amidst a decade of significant changes and increasing scrutiny from the Pensions Regulator. The primary issue identified was the need for improved governance and monitoring of administration functions, which were not operating as efficiently as required. To tackle these challenges, Aon and CIPFA developed a comprehensive guide titled ‘Administration in the LGPS’. This guide emphasizes the importance of effective management and monitoring of pension administration, advocating for clear strategies and robust business planning. It outlines essential information that should be continuously monitored to ensure that LGPS funds are managed effectively. The guide aims to raise awareness among senior officers and board members about their collective responsibility in overseeing the administration and communication aspects of LGPS funds. The tailored solution provided by Aon is expected to empower LGPS decision-makers with the necessary tools and insights to enhance the quality and timeliness of their administration. By utilizing the guidance, administering authorities can better identify areas where additional resources and support are needed, ultimately leading to more effective and efficient administration of pension benefits for scheme members. This initiative not only addresses the immediate operational challenges but also aligns with the ongoing pressures to reduce costs within the public sector, ensuring that LGPS funds can meet their obligations effectively.