The Local Government Pension Scheme: today’s challenges, tomorrow’s opportunities
For more than a decade, the LGPS has undergone rapid change. Against a backdrop of the world financial crisis, austerity and pay freezes for local authorities, and – more recently – the global pandemic, the LGPS has had to contend with a rolling series of reforms including becoming a Career Average Revalued Earnings (CARE) Scheme for future accrual, transitioning to investment pooling, incoming responsible investment regulations and the impending implementation of the McCloud Judgment.
Despite these challenges, the LGPS remains in a strong position. It is the largest defined benefit (DB) pension scheme in the UK, and one of the biggest in the world, with assets totalling more than £332 billion. It provides pension benefits to 6.9 million members, across more than 17,000 employers in a diverse range of essential fields.
This research project – ‘LGPS: Today’s Challenges, Tomorrow’s Opportunities’ – has been carried out independently by the PLSA but informed by dialogue from those who work within the LGPS. This work is intended to provide PLSA members and those with an interest in the LGPS, additional information to aid and inform ongoing debates about the scheme’s purpose and on how to prioritise the opportunities available. It also aims to suggest practical next steps to some of the challenges highlighted.