Earlier this month, the Campaign Against the Arms Trade (CAAT) obtained documents under the Freedom of Information Act that revealed the local authorities had invested £723m in 15 of the largest international arms companies. The study raises questions about the ethical values and democratic oversight of local authorities’ investments, largely made without reference to voters and council employees. But Holloway told the audience: "We at the centre are not going to tell local authorities where they should be investing." The national media had speculated recently that the DCLG might introduce new requirements for councils to invest more ethically. But Holloway ruled this out. "Local authorities are required to publish statements of investing principles, and as part of that policy statement, they are required to state what their ethical investment policy is", he said. "We are not minded to change that in any way." According to CAAT's figures, around one in three council pension funds invested in Lockheed, which manufactures Trident nuclear missiles. 67 of the UK's 99 council pension funds invested a total of £244.9m in BAE Systems, the UK's largest arms company. Of the 88 council funds that provided information, all but two invested in arms manufacture.

The 'Turner Report' highlighted a need for a drastic reappraisal of the pensions system and recommended three options: work longer, save more, or increase State Pension.
In the same year (2004), the Government passed both the Finance Act and the Pensions Act and 'in doing so' replaced the Occupational Pensions regulatory Authority with the Pensions Regulator; the aim of the legislation is two-fold, to simplify the pensions system and to encourage greater investment. The result of this legislation is A DAY.

A DAY (6th April 2006) is the date that new pension legislation comes into force and Britain’s pension system will undergo its most radical overhaul in 50 years.

Ministers have stated that they would like to see the Local Government Pension Scheme safeguarded as a statutory, funded final salary pension scheme; however, this must be balanced against the increasing cost of pension provision. The scheme is sponsored centrally by the ODPM, which is responsible for its stewardship and maintaining its regulatory framework; however, within that framework, it is administered, managed and funded at local authority level. Many local authorities are now taking a keen interest in alternative investments along with proven traditional methods.

Asset allocation to alternative investments has produced some of the most successful track records in the history of institutional investment; however, adding significant alternative asset exposure to traditional assets is not without its challenges and, to the untrained, can be a potential minefield.

In this changing climate, the roles and responsibilities of trustees, actuaries, advisors and employers have never been greater.

Trustees/fund managers need to show that they have the knowledge and understanding required to carry out their trustee duties; they will need to:
• Appoint the scheme's professional advisers, for example, the scheme auditor and scheme actuary;
• Have sufficient knowledge and understanding of particular areas, including trust law, funding principles and investment principles;
• Trustees must obtain advice from their actuary before making certain funding decisions;
• Trustees will need to work closely with actuaries and advisors, not simply taking advice but actively questioning, challenging and evaluating this advice;
• Draw up action/recovery plans for each investment/scheme so that progress can be monitored.

Through speakers, workshops and coverage, our event will provide a platform for discussion regarding both the investment futures of the Local Government Pension Schemes, and the challenges faced by those tasked with the Schemes' administration.

Event Aims & Objectives:
• To enable industry and the public sector to work together more effectively;
• To improve the standard of scheme administration;
• To increase their knowledge on alternative investment opportunities;
• To share Best Practice.