Who's who in the LGPS

LGPS overview

The LGPS is a defined benefit, funded occupational pension scheme, set up under Regulations set by Parliament.

The pension scheme provides pension benefits for those who work in or with the local authority and is open to employees of local government as well as a wide range of other public service employers e.g. charities and private sector contractors.

The pension benefits under the LGPS are set nationally and are very secure as they are written in statute.

Although the LGPS is a nationwide scheme, it is administered locally and is made up of many standalone funds, which are normally administered by local authorities.

Who's who in the LGPS

There are many parties involved in the management and administration of the LGPS.

The Administering Authority

Usually a council, who has the responsibility of managing all aspects of the fund. Surrey County Council is the Administering Authority for the Surrey Pension Fund.

Department for Levelling Up, Housing and Communities (DLUHC)

The central government department, which has overall responsibility for the strategic management and policy making in relation to the LGPS in England and Wales.

Pension Committee

Primarily made up of elected members from the Council. Most Committees have some delegated authority from the Administering Authority, although some are advisory only.

The committee usually has overall responsibility for the fund and provides a similar function to that of trustees in private sector pension schemes.

The main responsibilities are:

  • Agreeing the fund's objectives and investment beliefs;
  • Considering advice from the investment advisers and the fund's Actuary;
  • Ensuring that all relevant documentation is in order;
  • Ensuring the smooth administration of the fund for members and employers.

LGPS Boards

The local pension board is made up of member and employer representatives whose aim is primarily to assist the Administering Authority in the governance of the scheme.

Unlike the pension committee, local pension boards have no direct delegated decision-making responsibilities. All LGPS funds are required to have a local pension board. The board's role is to assist in ensuring that funds are governed efficiently and effectively and that regulatory and best practice requirements are met.

LGA (Local Government Association)

Provide guidance on the technical aspects of the LGPS. The LGA provide videos and guides to assist employers, funds, and members to understand the Regulations.

CIPFA (Chartered Institute of Public Finance and Accountancy)

Provide support on reporting and accountancy aspects of the LGPS.

The Pensions Regulator

Responsible for regulating the governance and administration of pension schemes and has published a code of practice for public service schemes to adhere to.

Scheme Advisory Board (SAB)

A national body representing employers and scheme members, which works with Government and other stakeholders to encourage best practice, increase transparency, and coordinate technical and standards issues.

Actuary (Our actuaries are Hymans Robertson LLP)

The fund actuary will carry out regular actuarial valuations of the fund (every 3 years) to ensure that there are sufficient funds to pay for the benefits as they fall due and contributions are paid at an appropriate level.

Your contribution rate(s) is set once the valuation has taken place.

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