Council Pensions Good News

14 Oct 2010

36% increase in fund values shows the Local Government Pension Scheme (LGPS) is in a strong financial position says GMB.

GMB commented on the new official figures released by CLG show that the market value of LGPS funds in England increased by £35bn last year reaching £132bn.

Brian Strutton, GMB National Secretary said, “The figures announced by the government show that despite repeated claims to the contrary, the LGPS is on a sound financial footing. The LGPS has a positive cashflow of nearly £4bn every year and has a market value of well over £132bn, enough to cover all pensions and other benefits for the next 20 years.

Meanwhile reforms to benefits and member contributions combined with the indexation cut imposed by the government and scheme reforms have reduced the liabilities of the scheme by around 25%.  This combination of strong asset growth and reduced liabilities makes the LGPS a sustainable and affordable pension scheme. This is good news for the 4 million members of the LGPS and good news for taxpayers.”

With around half the scheme’s income coming from members’ contributions and investment returns, £65 of the average council tax bill goes towards the LGPS and we can be confident of this falling significantly. It’s all thanks to the funded nature of the LGPS and the careful management of those LGPS funds and demonstrates that this scheme is sustainable and affordable.”