In this section:
The LGPS and stock markets
You may have seen recent news reports about volatility in the stock markets and the potential resultant impact on Defined Contribution (DC) pension savings.
As a member of the LGPS, you are a member of a public sector Defined Benefit (DB) scheme and therefore your LGPS DB pension savings are not linked to stock market performance and are protected by statute.
Although short term investment values may vary, the LGPS as a long-term investor is securely managed to address any longer-term impacts. Whilst we could not have predicted Covid-19 and the impact it would have on the stock market we did envisage that we were likely to be entering a period of increased market volatility, so we were extra prudent when we carried out the recent actuarial valuation of the Fund.
LGPS Scheme members can therefore be assured that both their contributions and their pension, whether in payment or built up to date, will be unaffected.
The only exception to this is Additional Voluntary Contributions (AVCs). If you have an AVC, it is possible the value may have reduced - this will depend on the funds you have chosen to invest in. You should contact your AVC provider for more information about this.