§ Mr. Hayhoe
Of the main public services only the local government superannuation scheme is funded. Government policy is to allow fund managers freedom to make their own decisions subject to certain limitations to safeguard the interests of prudent investment. Not more than 10 per cent. of the fund can be in unlisted securities, not more than 5 per cent. can be invested in any one concern, not more than 10 per cent. can be deposited with any one bank, and not more than 10 per cent. may be lent. The administrators are also required to take account of the need for diversification of investment, to have regard to the suitability of any investment proposals, and must seek expert financial advice at reasonable intervals.
The median rate of return for local government superannuation scheme funds in England and Wales for a time-weighted five-year period from 1979 to 1984 is 18.6 per cent.
In the nationalised industries, pension funds are the responsibility of the industry and pension fund trustees, and the Government have no responsibility for their operation.