The Local Government Pension Scheme
The LGPS is one of the largest public sector pension schemes in the UK. It is a nationwide pension scheme for people working in local government or working for other employers participating in the scheme. The LGPS in England and Wales is administered locally through 89 local pension funds, one of which being the Clwyd Pension Fund.
The scheme regulations were made under the Superannuation Act 1972 and also under the Public Service Pension Schemes Act 2013. Changes to scheme rules are discussed at national level by employee and employer representatives but can only be amended with the approval of Parliament. The Clwyd Pension Fund must keep you informed of any changes that are made.
The LGPS is a registered public service pension scheme under Chapter 2 of Part 4 of the Finance Act 2004. It achieved automatic registration by virtue of Part 1 of Schedule 36 of that Act (because the scheme was, immediately before 6 April 2006, both a retirement benefits scheme approved under Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 and a relevant statutory scheme under section 611A of that Act). This means that you receive tax relief on your contributions, and it complies with the relevant provisions of the Pension Schemes Act 1993, the Pensions Act 1995 and the Pensions Act 2004.
The LGPS meets the government's standards under the automatic enrolment provisions of the Pensions Act 2008.
As a scheme member, you will pay contributions to the LGPS. Your employer currently pays in the balance of the cost of providing your benefits after taking into account investment returns.
Every three years, an independent actuary calculates how much your employer should contribute to the scheme. The amount will vary, but generally the present underlying assumption is that employees contribute approximately one third of the scheme's costs and the employer contributes the rest.
Future cost management of the LGPS
To ensure the long term sustainability of the scheme a cost management process is now in place in the LGPS in England and Wales which will monitor the cost of the scheme to ensure it stays within agreed parameters as set by the Scheme Advisory Board and HM Treasury.
Should costs increase outside those parameters future changes to the scheme design may be required. There is a responsibility to safe-guard the Clwyd Pension Fund and invest it in a responsible manner to ensure that the Fund is able to pay both current and future pensions.
LGPS regulations state that there are several documents which must be published and these can be found on this section of the website. These include the Investment Strategy Statement, Funding Strategy Statement and the Governance Policy Statement.
This section of the website should answer all your pension queries but if you are unable to find the information you are looking for, please contact the Clwyd Pension Fund directly.
You can view the Local Government Pension Scheme Regulations and amendments by using the timeline link below