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UK's £250bn public pension scheme cuts required returns

Local Government Pension Scheme needs to make less from markets in future, thanks to a lower funding deficit

UK's £250bn public pension scheme cuts required returns
Photo: iStock

The UK's biggest public sector pension scheme has improved its funding, meaning it has to make up less of a shortfall through investment returns in the future.

The £250 billion Local Government Pension Scheme for council workers needs to make 4.5% a year from its investments to fix its deficit, according to the latest calculations from the investment consultancy, Hymans Robertson. That is down from 5% a year calculated in 2013.

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