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Anthony Hilton: Politics puts the block on pension money saver

Anthony Hilton
Saturday 15 December 2012 01:00 GMT
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The financier and businessman Ed Truell worked out a few months ago that merging all the local-authority pensions schemes in this country would save up to £35bn over five years through lower costs, greater efficiency and more productive investment.

He got PWC, the accounting firm, to give a second opinion. Even being cautious they said there was at least £17bn to be had.

He pitched the idea to Chancellor George Osborne, but he thought that politically it would be too difficult.

A separate effort to merge the schemes in the capital is being led by the London Pension Fund Authority (LPFA), but is meeting stiff resistance from some of those who would be taken over.

Now, however, I hear Mr Truell is being lined up by London Mayor Boris Johnson to become next chairman of the LPFA.

It is a great choice, but one likely to set the sparks flying.

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