PLSA publishes introductory guide to LGPS for new councillors

The Pensions and Lifetime Savings Association (PLSA) has published an introductory guide to the Local Government Pension Scheme (LGPS) designed to help new councillors understand the workings of the scheme and their roles and responsibilities within it.

The LGPS is the largest funded defined benefit (DB) pension scheme in the UK, and one of the biggest in the world. It has 7.1 million members, over 15,500 employers, and assets totalling more than £425 billion.

Published ahead of the PLSA annual Local Authority Conference, the largest conference of its kind, “A Quick Introduction to the Local Government Pension Scheme” provides essential information to help LGPS councillors understand their involvement and the broader framework of governing the scheme.

Key features of the guide include:

Roles and Responsibilities

• Overview of the responsibilities of Administering Authorities, Local Pension Committees, and Local Pension Boards.
• Explanation of councillors’ roles in ensuring compliance with legislation and effective governance.

Scheme Structure and Funding

• Detailed outline of the LGPS structure and its funding through employer and employee contributions.
• Information on how contributions are invested to meet future pension obligations and maintain a balance between assets and liabilities.

Regulatory Bodies

• Description of the roles of regulatory bodies such as the Department for Levelling Up, Housing and Communities (DLUHC), the Scheme Advisory Board, and the Pensions Regulator in overseeing the LGPS.

Summary of important policy areas that apply to the LGPS

• A heat map outlining some of the most pertinent issues that LGPS funds are currently facing, together with the entities responsible for these areas.

Joe Dabrowski, Deputy Director – Policy at the PLSA, said; “The LGPS stands as one of the largest and best-funded pension schemes worldwide. Over the past decade, it has successfully navigated through continuous and rapid changes, alongside economic uncertainty.

“Following the local elections in May, many new councillors will be getting acquainted with the LGPS for the first time. This guide aims to help them in establishing best practice and understand the significant value that the LGPS offers to its members.”