Governance of the Local Government Pension Scheme
Who runs the Local Government Pension Scheme (LGPS)?
The LGPS is one of the largest public sector pension schemes in the UK. It is a nationwide pension scheme for people working in local government or working for other types of employer participating in the scheme.
The LGPS in England and Wales is administered locally through 90 local pension funds. The Staffordshire Pension Fund is one of these funds.
LGPS rules
The scheme regulations were made under the Superannuation Act 1972 and in the future will be made under the Public Service Pension Schemes Act 2013. Changes to scheme rules are discussed at national level by employee and employer representatives but can only be amended with the approval of Parliament.
The LGPS is a registered public service pension scheme under Chapter 2 of Part 4 of the Finance Act 2004. It achieved automatic registration by virtue of Part 1 of Schedule 36 of that Act (because the scheme was, immediately before 6 April 2006, both a retirement benefits scheme approved under Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 and a relevant statutory scheme under section 611A of that Act).
This means, for example, that you receive tax relief on your contributions. It complies with the relevant provisions of the Pension Schemes Act 1993, the Pensions Act 1995 and the Pensions Act 2004.
The LGPS meets the government's standards under the automatic enrolment provisions of the Pensions Act 2008.
Governance
The overall responsibility for managing the fund lies with the full council of Staffordshire County Council in its role as administering authority. Under the County Council's constitution, further delegations for the management, administration and investment of the Fund are made to the Pensions Committee, the Pensions Panel and the Director of Finance and Resources and his staff.
The Pensions Committee has full delegated powers to deal with all functions relating to Local Government Pensions on behalf of Staffordshire County Council, including the management of the administration of benefits and the strategic management of the Fund's assets.
Pension Committee
See the Pension Committee page for futher information.
Local Pension Board
Since April 2015, your administering authority must establish and operate a Local Pension Board. The board is responsible for assisting the administering authority in securing compliance with the LGPS regulations, overriding legislation and guidance from the Pensions Regulator. The board is made up of equal representation from employer and member representatives.
Please see the Local Pension Board page for further information.
Additional information is contained in our governance policy.
Funding
As a scheme member, you will pay contributions to the LGPS. Your employer currently pays in the balance of the cost of providing your benefits after taking into account investment returns.
Every three years, an independent actuary calculates how much your employer should contribute to the scheme. The amount will vary, but generally the present underlying assumption is that employees contribute approximately one third of the scheme's costs and the employer contributes the rest.