As an organisation with its origins in the public sector, LPP shares the public sector ethos of delivering cost-effective and efficient services without a profit motive. This is reflected across all aspects of our operations.
Asset and Liability Management
LPP is an Asset & Liability Management (ALM) partnership with a focus on providing a range of services to assist partner funds to manage their assets and liabilities (risk) together, so that they can plan their cash flows and determine the returns required from their assets on an accurate and timely basis.
LPP's structure is compatible with Government’s criteria for pooling assets. Funds can participate either as full shareholders or as investors in the pool. Individual funds retain their local accountability, keeping control of strategic decisions such as employer contribution rates, strategic asset allocation and setting risk appetite. The sovereignty of all pension fund partners is also maintained. Incoming shareholder partner funds will incur no set-up costs and will not be required to make a contribution to the regulatory capital requirements.
Asset pooling is carried out through an Authorised Contractual Scheme managed by an FCA-regulated operator, which offers a high degree of assurance to all stakeholders.
Illiquid assets that cannot be pooled, such as property, infrastructure and other alternatives, can benefit from being jointly managed through Special Purpose Vehicles.
Any surpluses are retained to improve the services to all partners and to reduce the cost to partners of the services, through retrospective rebates, and prospective price reductions (on a % participation basis).
The scale of LPP’s organisation will deliver operational benefits in terms of efficiencies and economies of scale. Over time this:
- Will contribute towards reducing fund deficits.
- Facilitate more stable employer contribution rates and continuity of member benefit structures.
- We operate from multi-sites, including on client sites if required, with the aim of delivering our services from the most cost-effective locations.
Our teams are supported with state-of the-art systems enabling:
- Timely and accurate analysis and reporting of fund liabilities and performance to trustees and officers.
- Efficient and reliable pension administration services, including call-centre support (business day) and online self-service access for both members and employers.
We have built a team of highly experienced and well-qualified investment and risk management professionals, who understand the funding and risk issues faced by partner funds.
Our pension administration professionals have in-depth knowledge of public-sector funds and a commitment to delivering a professional and responsive service to members and employers alike.
LPP offers an opportunity for investment or administration staff within incoming funds to TUPE transfer to LPP.
What we do
Our range of services can assist our partner funds reduce deficits, lower costs and improve outcomes for all stakeholder groups.