Public sector pension consulting

The LGPS is the pension scheme for people who work in local government and many other public service organisations across the UK. It is a defined benefit scheme, which means a member’s pension is based on their salary and length of service rather than on investment returns alone. Unlike most other public sector schemes, it is funded, so contributions are invested in regional funds to help pay members’ benefits.

An actuarial valuation checks the financial health of a fund and sets how much employers need to contribute. LGPS funds are valued every three years. A smooth valuation depends on a clear process, good data, informed decision-making and effective engagement with employers and other stakeholders.

Actuarial consulting helps a fund understand and manage its risks while meeting its long-term funding and investment goals. It includes the triennial valuation, setting employer contribution rates, advising on funding strategy, and supporting employers as they join or leave the fund.

Responsible investment means taking environmental, social and governance factors into account when investing fund assets. For LGPS funds it involves setting clear beliefs and policies, and reporting on how those are put into practice.

Asset pooling brings the investments of separate LGPS funds together into larger pools to gain scale, reduce costs and improve access to a wider range of investments. Funds still set their own investment strategy, while the pool handles implementation and may provide strategic advice.

Government policy on pooling has been developing in recent years and only applies to funds in England and Wales, so the detail of what funds are required to do is worth checking against the latest guidance.

We work with LGPS administering authorities, pension committees, local pension boards, fund officers and the employers that participate in the scheme, providing actuarial, investment, governance, administration and digital support. 

We also engage with national level LGPS stakeholders such as the Scheme Advisory Boards in England & Wales and Scotland, the Ministry of Housing, Communities and Local Government (MHCLG) and the Scottish Public Pensions Agency (SPPA), the Local Government Association (LGA) and the Government Actuary’s Department (GAD).