UK pushes to create 'mega fund' to integrate local government pension fund

The UK government is pushing for the creation of a "mega fund" that integrates dozens of local government pension funds to boost investment.

Treasury Secretary Rachel Reeves says she is pushing legislation to raise eight large pensions through local government pension reform.

Currently, the UK's local government pension fund operates assets worth £390 billion and about 694 trillion won with a total of 6.7 million subscribers.

The UK government aims to consolidate 86 pension funds to create large pensions worth at least 25 billion to 50 billion pounds and around 45 trillion to 89 trillion won by 2030.

The management entity has also decided to change from each local authority or local council to a professional fund manager.

The UK government believes this will secure 80 billion pounds and 143 trillion won in investment in infrastructure projects or future projects by 2030.

In addition, some of the pension funds will be invested in the local economy, and if the target is set at 5%, 20 billion pounds, about 36 trillion won, will be available.