Cambridgeshire County Council Pension Fund

Cambridgeshire County Council Pension Fund
Name	Cambridgeshire County Council Pension Fund
Type	Local Government Pension Scheme fund
Location	Cambridge, Cambridgeshire, England
Established	1974
Governing body	Cambridgeshire County Council
Assets	~£X billion (varies)
Members	~X active, deferred, pensioner
Website	Official site

Cambridgeshire County Council Pension Fund is a local government pension scheme administered in Cambridgeshire by Cambridgeshire County Council covering employees of local authorities, NHS bodies, and admitted bodies across the county and city. The fund operates within the statutory framework set by the Local Government Pension Scheme (LGPS), the Department for Work and Pensions, and oversight from the National Audit Office, engaging with custodians, asset managers and actuaries such as Hymans Robertson, Mercer, and Barnett Waddingham for administration and valuation. It interfaces with regional stakeholders including Cambridge City Council, Peterborough City Council, East Cambridgeshire District Council, and educational institutions like the University of Cambridge and Anglia Ruskin University.

Overview

The fund provides defined-benefit pensions under the Local Government Pension Scheme (LGPS) for members employed by employers across Cambridgeshire, including unitary authorities, police authorities like the Cambridgeshire Constabulary, and academies sponsored by charities such as the Education Funding Agency. It is governed by statutory instruments originating from the Pensions Act 2004 and subject to auditing by bodies like the National Audit Office and regulatory guidance from the Financial Conduct Authority. Key service providers historically include actuaries from Hymans Robertson, custodians like The Bank of New York Mellon, and investment managers such as Legal & General, BlackRock, and Aberdeen Standard Investments.

Governance and Administration

Governance is provided by a pensions committee comprising elected members from Cambridgeshire County Council, employer representatives from bodies like NHS Cambridgeshire and Peterborough Clinical Commissioning Group and trade union nominees from organisations such as Unison and the GMB. Administration is carried out by the council’s pensions team in conjunction with third-party administrators that may include firms like Capita or Equiniti and actuaries such as Mercer. The fund’s policy framework references documents influenced by the Pensions Regulator and guidance from the Chartered Institute of Public Finance and Accountancy and aligns with governance practices used by funds such as the Greater Manchester Pension Fund and the Environment Agency Pension Fund.

Investments and Asset Allocation

Investment strategy balances equities, fixed income, property, infrastructure and alternatives with mandates to global managers including BlackRock, State Street Global Advisors, Schroders, JP Morgan Asset Management and Invesco. The allocation typically mirrors benchmarks influenced by indices from FTSE Russell, MSCI, and Bloomberg Barclays and uses pooled vehicles such as those provided by LF and UBS Asset Management. The fund has engaged in direct infrastructure investments alongside peers like the London Pensions Fund Authority and has considered renewable energy projects similar to portfolios held by Aviva Investors and Macquarie. Environmental, social and governance considerations reference frameworks from Task Force on Climate-related Financial Disclosures and stewardship codes like the UK Stewardship Code.

Membership and Benefits

Membership spans active contributors, deferred members and pensioners drawn from employers including Cambridgeshire County Council, Cambridge University Hospitals NHS Foundation Trust, and multi-academy trusts such as the Cambridge Meridian Academies Trust. Benefits are calculated under LGPS formulas as governed by the Local Government Pension Scheme Regulations and have been shaped by reforms associated with the Public Service Pensions Act 2013, with options for lump sums, survivor benefits, and transfer values subject to rules overseen by the Pensions Ombudsman. Communication to members references guidance from the Pensions Advisory Service and collaboration with bodies like Age UK.

Funding, Actuarial Valuation and Risk Management

Actuarial valuations are carried out triennially by firms such as Hymans Robertson or Mercer to assess funding levels, employer contribution rates and deficit recovery plans under assumptions influenced by the Bank of England base rate and inflation measured by the Office for National Statistics. Risk management covers interest-rate risk, longevity risk, and market risk and employs instruments and strategies used by large schemes such as longevity swaps and pooled procurement similar to initiatives by the Local Government Association and SAB (Scheme Advisory Board). The fund’s funding strategy statement aligns with guidance from the Ministry of Housing, Communities and Local Government.

Performance and Accountability

Performance reporting benchmarks returns against indices from FTSE Russell, MSCI and Bloomberg Barclays and compares performance with peers such as the Essex Pension Fund and Norfolk Pension Fund. External audit of financial statements is provided by firms like Mazars or PKF Littlejohn and scrutiny comes from elected councillors, employer boards, and member representatives drawn from UNISON and GMB. The fund publishes annual reports and governance compliance statements aligned with the Local Government Pension Scheme (Management and Investment of Funds) Regulations and participates in national surveys by the National Association of Pension Funds and the Local Government Pension Scheme Advisory Board.

History and Recent Developments

The fund traces its statutory basis to the reforms following the Local Government Act 1972 and subsequent LGPS reforms culminating in the Public Service Pensions Act 2013. Recent developments have included shifts toward responsible investment influenced by campaigns led by organisations such as Friends of the Earth and policy shifts following reports by the Climate Change Committee and Environmental Audit Committee. The fund has periodically reviewed asset allocation in response to economic events like the 2008 financial crisis, the COVID-19 pandemic and monetary policy changes from the Bank of England. Collaborative procurement and pooling initiatives have mirrored the creation of pools such as the Border to Coast Pensions Partnership and policy engagement with the Local Government Association and the Scheme Advisory Board.

Category:Pension funds in the United Kingdom Category:Organisations based in Cambridgeshire