National LGPS Frameworks made the announcement as the body officially launched a restructured framework to procure investment management consultancy services, after signing contracts with a number of funds.
The frameworks allow funds to leverage better prices by pooling resources and increasing their buying power.
National LGPS Frameworks said its savings estimate was based on evidence from existing frameworks as participation has increased over the past five years.
The new framework covers the procurement of investment consultancy, investment manager search and selection and specialist investment consultancy-related project services from a wide range of qualified providers.
Twelve providers have been selected for the framework, including PwC, KPMG and Deloitte Total Reward and Benefits.
Nicola Mark, head of the Norfolk Pension Fund and chair of the National LGPS Frameworks collaboration, said: “It is hard work to set up and manage these frameworks and requires huge dedication from the funds and professionals who give their time and expertise to establish and help manage them.
“This is real collaboration in action, already delivering tangible and significant savings and benefits for the LGPS today.”
The original framework for investment consultancy services was the first of its kind when it launched in 2013.
In all, 31 local government pension scheme [LGPS’] funds have joined that framework, and it is estimated to have made savings of more than £3.6m.
There are six other frameworks currently available, with one on transition management and implementation services “in the pipeline”.
