The local government pension scheme 

The Local Government Pension Scheme (LGPS) is the name given to the funded defined benefit pension scheme run by local authorities in England and Wales, separated into independent “funds” for each local authority, each with a slightly different approach.

Employers across a wide range of industries can participate in these schemes, but the university and HE sector is a big part of this and many universities are exposed to it. 

These funds are run independently of each other. They are subject to the same rules and provide the same benefits, but can take quite different approaches to managing risk, and how they treat particular types of employer (e.g. higher education institutions). The funds have an actuarial valuation every three years, and the contributions that employers must pay are set by each local authority based on those results.

The most recent valuation for funds in England and Wales was carried out in 2019 and our webinar provides a good introduction to some of the issues that participating employers may be facing, including the impact of some landmark legal cases that could have long-lasting implications for the cost of benefits: 

Scottish Funds have their next valuation in 2020.

LGPS can provide a good level of pension benefits for many staff, but as a funded arrangement it can be difficult – and costly – to leave it.

Get in touch with a member of our team to find out how we can help you.