Reuters has reported that two major pension schemes have joined Uk's first infrastructure fund, reinforcing government's efforts to tap pension savings for infrastructure projects.

The London Pensions Fund Authority (LPFA) and Lloyds TSB have joined The Pension Infrastructure Platform (PIP), bringing the number of signed firms to ten and total backing for the fund so far to 1 billion pounds, PIP said on Monday.

PIP is an investment fund backed by the pension schemes of companies such as the BT, BAE Systems and British Airways. The fund is targeting £2 billion. Its founding investors include the London Pension Fund Authority (LPFA), West Midlands Pension Fund and Strathclyde Pension Fund.

The National Association of Pension Funds is backing the project, which will be launched in the first half of 2013.

PIP will invest in brownfield and greenfield projects with the aim of achieving returns of 2-5 percent above inflation.