Free cost transparency framework for LGPS funds launched
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The Local Government Pension Scheme Advisory Board has gone live with a new national framework of investment cost transparency and benchmarking services, which is free for users. The SAB’s centralised data cost system will be switched off in August.
The first iteration of a new National LGPS Procurement Framework for Cost Transparency and Benchmarking Services is now live, the National LGPS Frameworks team and the LGPS Advisory Board for England and Wales have said.
Services can be procured from two specialised lots:
1. Investment Cost Data Collation and Reporting Services
2. Investment Cost Data Analysis and Benchmarking Services
There are currently four providers across the two lots: Byhiras; CACEIS Investor Services; CEM Benchmarking UK; and ClearGlass.
There are currently four providers across the two lots: Byhiras; CACEIS Investor Services; CEM Benchmarking UK; and ClearGlass.
The framework continues the SAB’s work on the LGPS Code of Transparency and will give funds easy access to services enabling the collation, validation, reporting, analysis and benchmarking of investment cost data templates, which are mainly Cost Transparency Initiative templates, from qualified providers, the SAB noted.
Cllr Roger Phillips, who chairs the Scheme Advisory Board, said the LGPS Code of Transparency has instituted greater clarity around investment costs since its inception in 2017.
“With the contract for the Board’s centralised cost data system coming to an end in August 2026, the board has decided that now is the right time to adopt a different approach,” he said.
Thanking the members of the founders’ group and the National LGPS Frameworks team, he said: “The Board has agreed to make this framework free to join to reduce overall procurement costs and hopes that the framework will be of great benefit to LGPS clients across England, Wales, Scotland and Northern Ireland.”
Jill Murray, pensions, investments and accounting manager at Scottish Borders Pension Fund, said her fund is committed to UK-wide collaboration.
“Being part of the founders’ group has been a thoroughly positive experience, and I have really valued the opportunity to contribute to the development of the new framework for Cost Transparency and Benchmarking,” she said.
Supported by the National LGPS Frameworks team and procurement and legal specialists from Norfolk County Council, the framework was created by a group consisting of the SAB, Essex Pension Fund, Lincolnshire Pension Fund, Scottish Border Pension Fund, South Yorkshire Pensions Authority, Greater Manchester Pension Fund and Greater Gwent (Torfaen) Pension Fund.
Unison, which represents about 600,000 local government workers, supports the Cost Transparency Initiative, including the LGPS Code of Transparency and the reporting underpinning it.
“Funds and pools have argued for less prescription in the format of reporting; we support trying this new approach to see whether it is effective in understanding and controlling costs,” said Andrew Dobbie, national officer for capital stewardship at Unison.
“Unison reps will continue to press for minimisation of management costs, all of which are paid from members’ money in LGPS funds. The hope for the new approach is that it reduces management costs and makes them more transparent, for those involved in fund governance, for ordinary scheme members, and more broadly,” he added.
The Board’s centralised data system will end in August 2026. The SAB said it will communicate with funds and pools with data on the system, issuing reminders to extract data before the system closes down.
