As a member, you’ll come across a lot of L-acronyms: LGPS, LPFA, LPPI and LPPA, among others. Here, we explain what they mean and how they are all linked.
You’re a member of the Local Government Pension Scheme (LGPS), which is one of the largest public sector pension schemes in the UK. It’s a valuable benefit provided to local government workers and workers for other employers in the Scheme. The LPFA pension fund is part of the LGPS. There are around 88 similar English and Welsh funds in the LGPS, all providing pensions for workers connected to local government.
Until 2016, each of these funds invested its assets separately. Now these funds, including the LPFA, are grouped into one of eight ‘Pools’. This was done to reduce costs as investment managers could be shared and their fees reduced. In 2019 alone, pooling has helped the LPFA save £19 million in fees.
The LPFA pension fund sits in the Local Pensions Partnership ‘Pool’, which we own 50/50 with the Lancashire County Council. LPFA, the Lancashire County Pension Fund and the Royal County of Berkshire Pension Fund are all clients of LPP as part of this Pool.
Local Pensions Partnership Administration (LPPA) administers the LPFA pension fund on our behalf. This means that they pay members’ their pension, keep member records up to date and help with any queries. Members will get regular emails from LPPA about their pensions and they’re the first point of contact on day-to-day administration.
LPPA’s sister company, Local Pensions Partnership Investments (LPPI), invests the money in the Fund on our behalf. Members will rarely hear from them directly.
Today, LPPI manages around £19.8 billion* of pensions assets, while LPPA provides pensions administration services for more than 600,000 LGPS, police and firefighters’ pension scheme members across over 1,900 employers. See LPP’s website for more information.
However, if you are or have been a member of the Fund, your pension remains the responsibility of the LPFA. Even though we have outsourced the administration and investment duties to LPPA and LPPI, we employ a small and experienced management team tasked with ensuring that LPPI and LPPA invest and manage the Fund according to the rules and regulations of the LGPS.
This structure might be confusing but it’s there to manage costs, maintain a valued pension system and ensure compliance with the rules and regulations for pensions and local authorities.
PensionPoint has all the information you need about your LPFA pension in one place. It’s managed by the Local Pensions Partnership Administration (LPPA), the company that administers the pensions of LPFA members. Here you can: