Recognising and retaining LGPS talent

A career in pensions is something that few of us envisage whilst at school. Yet for many, it becomes the focus of our working lives. Why do so many of us build a career in the LGPS, dedicating years to the scheme and the funds within it? Part of the reason is that it’s meaningful work, shaped by complexity, collaboration and constant change, with the potential to improve outcomes for millions of people in retirement.

Across England, Wales and Scotland, the LGPS currently has 6.7 million members with over 18,400 participating employers.

•  2.2 million people are currently paying into the LGPS.
• 2.1 million people are being paid a pension from the LGPS.
• 2.5 million have a pension with the LGPS that they have not taken yet.

These multi-billion-pound LGPS pension funds are expertly managed and administered by a small group of highly dedicated professionals. The numbers above demonstrate the scale and impact of their knowledge. Retaining knowledgeable staff is not just beneficial, but essential, as we move from one major project to the next. Think CARE scheme or Good Governance, McCloud to Dashboard and more recently, the ‘Fit for the Future’ consultation and updates.

The skills and knowledge Fund officers develop throughout their careers are essential in ensuring funds can deliver positive outcomes for members. Retaining talent, along with the specific knowledge and technical expertise individuals bring, is a priority for any fund reviewing its recruitment and training budgets. It also reduces the time and cost spent on hiring and onboarding, freeing up resource for other priorities.

Staff retention will have a significant link to remuneration and benefits, as well as opportunities for career progression. Staff will also feel more inclined to stay if they feel valued or are paid fairly. Retaining their skills and experience is vital to funds’ service provisions. Although LGPS funds should be self-financing, the financial pressures across councils and the wider public sector have had a clear impact on recruitment and retention, and the LGPS is no different.

LGPS officers bring a high level of technical expertise to their roles. Recognising this specialist skillset presents an opportunity for councils to reflect on the value they add. Funds are increasingly considering job evaluations for Fund officers and administrators to ensure that the pay band system is fair and in line with the role they perform.  

The scrutiny and expectations are also changing at a national level. In the Government’s recent ‘Fit for the Future’ consultation, it set out proposals for higher governance standards confirming its view that pension budget-setting should be seen as separate from the rest of the authority. In particular, the new LGPS senior officer will be responsible for ensuring the LGPS function is properly resourced to meet its duties.

The first step towards meaningful discussion

To help funds understand their position among peers, we’re launching an LGPS-specific salary and benefit benchmarking survey.

The goal? To gather valuable data enabling funds to have meaningful evidence-based conversations around specific roles and take informed decisions.

Of course, salary is not the only consideration for employees. A good work-life balance is increasingly important with flexible working and the ability to work from home being highly valued by some. Others will want to develop professionally, and value the ability to undertake qualifications while working.

Our survey aims to capture the full picture. Once its results are ready, we’ll provide participants with benchmarking information on salaries, with the option to purchase a detailed comparison of how the benefits they offer compare with peers. This is vital information when considering workforce planning and any restructure of the administering authority. Funds that keep pace with changing expectations are more likely to retain their staff, protecting the valuable knowledge and experience they’ve built over the years.

The survey will take place over July and early August, with the first results expected to be available by the end of August. To find out more, please contact Con Hargrave or Claire McDines.

Important information

This blog is based upon our understanding of events as at the date of publication. It is a general summary of topical matters and should not be regarded as financial advice. It should not be considered a substitute for professional advice on specific circumstances and objectives. Where this blog refers to legal matters please note that Hymans Robertson LLP is not qualified to provide legal opinion and therefore you may wish to obtain independent legal advice to consider any relevant law and/or regulation. Please read our Terms of Use - Hymans Robertson.