September 2022

The LGPS and the economy

There has been a lot of disturbing news lately about the changes to economic conditions and the potential resultant impact on pensions.

The Local Government Pension Scheme (LGPS) is a defined benefit pension scheme; this means that the benefits are guaranteed and not linked or subject to market performance, as set out in statute.

Although short term investment values may vary, the LGPS as a long-term investor is securely managed to address any longer term impacts.

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.

Note: If you have an AVC this is likely to be impacted by changes in economic conditions.