Local Government Pension Scheme
Local Government Pension Scheme (LGPS) is the statutory, funded defined benefit pension scheme for employees of local government and participating employers in the United Kingdom. In England and Wales it is administered locally by 86 administering authorities, in Scotland by 11 regional funds, and in Northern Ireland as a single fund administered by the Northern Ireland Local Government
Overview
Local Government Pension Scheme (LGPS) is the statutory, funded defined benefit pension scheme for employees of local government and participating employers in the United Kingdom. In England and Wales it is administered locally by 86 administering authorities, in Scotland by 11 regional funds, and in Northern Ireland as a single fund administered by the Northern Ireland Local Government Officers’ Superannuation Committee (NILGOSC). As of March 2025, the scheme in England and Wales covered about 6.9 million members and held investments of about £402 billion. The scheme design moved from final-salary benefits to career average revalued earnings in England and Wales from 1 April 2014, in Scotland from 1 April 2015, and in Northern Ireland from 1 April 2015. Funds are subject to triennial actuarial valuations to assess funding and set contribution strategies. Since 2015 administering authorities in England and Wales have been directed by government to pool investments through authorised asset pools in order to achieve economies of scale and strengthen governance.
How the scheme works
The Local Government Pension Scheme is a funded public service pension scheme set up by regulations and administered locally by pension funds across the United Kingdom. It is distinct from other large UK public service schemes such as the NHS Pension Scheme and the Teachers' Pension Scheme, which are mostly unfunded and operate on a pay-as-you-go basis.
Where the rules apply
In England and Wales the scheme framework is set by the Local Government Pension Scheme Regulations 2013 and related instruments, with detailed guidance issued by central government and the Scheme Advisory Board. In Scotland the scheme operates under the Local Government Pension Scheme (Scotland) Regulations 2018 with regulatory guidance provided by the Scottish Public Pensions Agency. In Northern Ireland the Local Government Pension Scheme is established by the 2014 regulations and administered by the Northern Ireland Local Government Officers’ Superannuation Committee (NILGOSC). The government’s policy on investment pooling applies to England and Wales only, with Scottish and Northern Irish funds running their own investment arrangements under their respective regulations.
Who runs it
Each administering authority acts as the scheme manager for its fund and is responsible for local administration and decision-making within the regulatory framework. Every fund must have a local pension board to assist the scheme manager in securing effective and efficient governance and administration. In England and Wales, the LGPS Scheme Advisory Board supports the Department for Levelling Up, Housing and Communities and administering authorities on scheme policy, data and guidance. Across the UK, funds are expected to meet the governance and internal-control standards set out by The Pensions Regulator for public service schemes.
Who is covered
Members include employees of local authorities and other participating employers admitted under the regulations, with categories reported in official statistics for England and Wales and equivalent publications in Scotland and Northern Ireland. “Members” in published totals usually means active contributors, deferred members and pensioners in payment, with a small number of flexible retirees where used by the reporting body. For an overview of the scheme’s governance and roles written for members, see the official LGPS member site.
Origins and early legislation
Local government superannuation developed piecemeal during the late nineteenth and early twentieth centuries, moving onto a statutory footing with the Local Government and Other Officers' Superannuation Act 1922. The Local Government Superannuation Act 1937 expanded and regularised the arrangements in England and Wales, with further changes made by the Local Government Superannuation Act 1953. In Northern Ireland the Northern Ireland Local Government Officers’ Superannuation Committee (NILGOSC) was established in April 1950 to administer the scheme there.
Consolidation and reform, 1972 to 2013
A modern scheme framework was established under section 7 of the Superannuation Act 1972, implemented through the Local Government Superannuation Regulations 1974. The scheme was re-titled and consolidated in the 1995 Regulations and then updated by the 1997 and 2008 packages, the latter introducing a “new look” final-salary design in England and Wales with a 1/60th accrual rate in place of 1/80th for service after 1 April 2008.
Reforms since 2014
Following the Public Service Pensions Act 2013, new regulations introduced a career average revalued earnings design from 1 April 2014 in England and Wales, with parallel changes from 1 April 2015 in Scotland and Northern Ireland. In November 2015 the government issued guidance requiring administering authorities in England and Wales to pool investments to achieve scale and stronger governance, followed by replacement investment regulations in 2016 and statutory guidance on investment strategy statements. The Court of Appeal’s 2018 judgment in McCloud and Sargeant found unlawful age discrimination in public service pension reforms. The LGPS implemented its remedy with effect from 1 October 2023 through the Local Government Pension Scheme (Amendment) (No. 3) Regulations 2023, with further explanatory material from Parliament and government sources describing the scheme-specific approach.
Governance and regulation
The LGPS is a public service pension scheme established by regulations made under primary legislation, with day-to-day administration carried out by administering authorities that act as the scheme manager for their fund. Each fund has a local pension board to assist the scheme manager in securing effective and efficient governance and administration, and must operate within the expectations set by The Pensions Regulator’s general code of practice for governance and internal controls.
England and Wales
In England and Wales the scheme framework is set by the Local Government Pension Scheme Regulations 2013 and related instruments, supplemented by statutory guidance from central government and the Scheme Advisory Board (SAB). Administering authorities must maintain an investment strategy statement and report on governance matters in their annual reports, with policy developments led by the Department for Levelling Up, Housing and Communities and advised by the SAB. Since 2015 they have been required to invest through authorised asset pools, with pooling policy and reporting refined through subsequent consultations and guidance.
Scotland
In Scotland the scheme is governed by the Local Government Pension Scheme (Scotland) Regulations 2018 and related Scottish statutory instruments, with the Scottish Public Pensions Agency providing regulatory guidance and oversight on behalf of the Scottish Government. Funds have local pension boards with employer and member representation, operating alongside existing committee structures, within the same overall regulatory expectations from The Pensions Regulator.
Northern Ireland
In Northern Ireland the scheme is administered by the Northern Ireland Local Government Officers’ Superannuation Committee (NILGOSC), which is the scheme manager and, following designation by the Minister for Communities, also the Pension Board for the scheme. NILGOSC operates within the Northern Ireland LGPS regulations and is sponsored by the Department for Communities, with governance and administration overseen against The Pensions Regulator’s code for public service schemes.
Wikipedia contributors · Local Government Pension Scheme · revision 1366854412 · CC BY-SA 4.0 · Plain text extracted and formatting adapted; tags derived from linked topics.