The Local Government Pension Scheme (LGPS) is one of the oldest public sector schemes in operation, having been established as a national scheme in 1922. There are about 1.5 million employees currently contributing to the LGPS in England and Wales; roughly 75% of the local government workforce. They contribute to the LGPS through any one of the 89 regional pension funds in England and Wales.
The administration of benefits for the Devon LGPS and the Somerset LGPS is managed by Peninsula Pensions. Rules by which the administering authorities must operate – the LGPS Regulations – are determined by the Government after consultation with employee and employer representatives, trade unions, the Local Government Association and the Local Government Pensions Committee. The latter represent a total of 409 local authorities in England and Wales, along with numerous Town, Parish and Community Councils. Each LGPS administering authority pays its benefits from a dedicated pension fund to which both the scheme member and their employer have contributed.
Contributions paid into the scheme are invested in a variety of stocks and shares that are overseen by both funds investment management teams.
As of 31st March 2019, the net assets of the Devon County Council Pension Fund were valued at £4,302 million. The fund itself currently has 38,624 actively contributing members, employed by 225 employers of various description (Unitary, District, Town & Parish Councils, Education Establishments and Admitted Bodies). Pensions are paid to 36,666 pensioners (and/or dependants) every month. There are currently 52,856 members with rights to deferred benefits.
The LGPS is contracted-out of the State Second Pension (S2P) and must, in general, provide benefits at least as good as most members would have received had they been members of S2P.