The LGPS in 2023-2024
Here are some key LGPS highlights for 2023-2024:
- Total membership of the LGPS increased, growing by 189,042 (2.8 per cent) to 6.68m members in 2023-2024 from 6.49m in 2022-2023
- Over 2m pensioners were paid during the year
- The total assets of the LGPS increased to £390bn, an increase of 10.1 per cent from £354bn
- These assets were mainly invested in public equities (49 per cent), bonds (16 per cent), property (7 per cent), infrastructure and private equity (both 6% respectively)
- Investment in bonds was significantly increased over the previous year (up from 12%) reflecting a significant improvement in yields
- The LGPS return on investment over 2023-2024 was 8.9 per cent. This compares very favourably to UK CPI year on year inflation of 2.5 per cent (Sept – Sept)
- The scheme maintained a positive cash-flow position overall, when including investment income
- While it has taken some time for death rates in the UK population to return to ‘typical’ levels following the pandemic, Club Vita’s data driven insights indicate that LGPS pensioners have generally shown greater resilience and that life expectancies of LGPS pensioners are returning to pre-pandemic levels
- Total investment management costs increased by £49.6m (2.9 per cent). Management fees increased by £52m, transaction costs increased by £20m while performance fees decreased by £15m and other [investment] costs decreased by £6m
- Total administration and governance costs increased by 5.7 per cent (£15.7 million) to £290.8 million in 2023-2024 from £275.1 million in 2022-2023. This was primarily due to an increase of £19m in administration costs.