Funding and investment
As a Scheme member, you pay contributions to the LGPS. Your employer pays the balance of the cost of providing your pension benefits. Employees contribute roughly one third of the Scheme’s costs and employers pay the rest.
Every three years an independent actuary calculates how much your employer should pay into the Scheme. The actuary takes investment returns into account when setting how much your employer must pay.
Your pension fund sets out its approach to investment in its investment strategy statement. The statement includes your pension fund’s policy on social and environmental considerations.
Cost management
A cost management process ensures the long-term sustainability of the LGPS. The cost of the Scheme is monitored to make sure it stays within limits agreed by the Scheme Advisory Board and HM Treasury. Changes to the Scheme design may be required if the cost of the LGPS becomes higher or lower than those limits.