Local Government Pension Scheme

What Local Government Pension Scheme does

The Local Government Pension Scheme (LGPS) is a statutory defined benefit pension scheme covering local government employees across England and Wales. The scheme is operated by the Local Government Association (LGA), which runs the official member-facing website (lgpsmember.org) providing scheme information, calculators, educational videos, webinars, FAQs, and guidance. With approximately £350 billion+ in assets under management across all LGPS funds and millions of active, deferred, and pensioner members, the LGPS is one of the largest public sector pension schemes in the UK. Membership is delivered through over 500 local pension funds administering the scheme at a regional level, with eligible employees automatically enrolled on day one of employment at participating local authorities, admission bodies, and designated bodies.

The core technology is a career average revalued earnings (CARE) defined benefit scheme introduced in 2014, accumulating pension at 1/49th of pensionable pay per year with automatic CPI-linked inflation protection. Key features include a 50/50 section allowing members to pay half contributions and build up half pension during financial hardship while retaining full life and ill-health cover, the McCloud remedy addressing age discrimination from the 2014 reforms, and automatic lump sum and survivor pensions. The scheme is supplemented by a suite of digital tools including online calculators (contributions, lump sum, annual allowance, buy lost pension, maximum AVC), bilingual English and Welsh educational video content, comprehensive FAQs, and webinars. Recent additions effective April–August 2026 include fairer survivor benefits, removal of the age limit for death grants, stronger protection during unpaid leave, and a new HMRC low earner top-up payment scheme.

The LGPS is not a commercial entity and does not generate revenue in the traditional sense. Member contributions range from 5.5% to 12.5% of pensionable pay depending on salary band, with employers contributing approximately double member contributions to cover the bulk of scheme funding. The go-to-market is community-led: members join through employer participation rather than commercial sales, with distribution via over 500 local pension funds and scheme employers. The member base spans local authority employees, civilian staff of police and fire authorities, academy staff, employees of town/parish councils, voluntary schools, and contractors delivering public services, and from May 2026 includes councillors and mayors in England. Welsh councillors already have access.

Name

Local Government Pension Scheme

Legal name

Local Government Pension Scheme

Website

https://lgpsmember.org

Company type

Private

Operating status

Operating

Headcount range

51–100 employees

Short description

The Local Government Pension Scheme (LGPS) is a statutory defined benefit pension scheme for local government employees in England and Wales, operated by the Local Government Association, with £350 billion+ in assets and millions of members.

Ownership category

akta.pro rank

Product category

Public Sector Pension Scheme

NAICS

Pension Funds (525110), Insurance and Employee Benefit Funds (5251)

SIC

Life Insurance (6311)

akta.pro primary industry

Pensions & Retirement Benefits Administration (BPAIAKAA)

akta.pro secondary industries

Corporate & Public Pension Funds (DB/DC Sponsors) (FSAAAGAA), Ancillary Employer Benefits (Life/Disability/Accident/Critical Illness) (HLAEAAAK)

Keywords

• Public sector pensions
• Defined benefit schemes
• Career average pensions
• Local government pensions
• Pension fund administration

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Member Contributions: Members pay pension contributions as a percentage of their pensionable pay, ranging from 5.5% to 12.5% depending on salary band. Tax relief is provided on contributions for those who pay income tax.
2. Employer Contributions: Employers (local authorities and participating bodies) pay the remainder of the cost of providing LGPS benefits, generally around double what members pay. This covers the bulk of scheme funding.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels6 records

Core offering

The LGPS is a statutory career average revalued earnings (CARE) defined benefit pension scheme providing retirement benefits to local government employees in England and Wales. Members accrue pension at 1/49th of pensionable pay per year, with employer co-contributions, automatic inflation linking via CPI, survivor benefits, ill-health retirement cover, lump sum options, and a 50/50 section for financial flexibility. The scheme covers approximately £350 billion+ in assets under management across hundreds of local pension funds and millions of members.

Product overview

The Local Government Pension Scheme (LGPS) is a career average pension scheme operated by the Local Government Association for employees of local government and participating employers in England and Wales. The core offering is a defined benefit pension with benefits accumulated at 1/49th of annual pensionable pay per year. The scheme is complemented by a suite of digital tools including online calculators (contributions, lump sum, annual allowance, buy lost pension, maximum AVC), educational video content in English and Welsh, comprehensive FAQs, and a 50/50 flexibility section for members facing financial hardship. The scheme also incorporates McCloud remedy protections addressing age discrimination from the 2014 reforms.

Differentiator

Problem solved

Functional benefit

Products and services

• LGPS Core Pension Scheme A statutory career average revalued earnings (CARE) defined benefit pension scheme for local government employees in England and Wales. Benefits accumulate at 1/49th of annual pensionable pay per year of membership, with employer co-contributions, automatic lump sum for pre-2008 members, inflation protection, survivor pensions, ill-health retirement cover, and flexible retirement options.

Quantifiable outcome

• Career average pension building up at 1/49th of pensionable pay per year of membership
• +3 more outcomes

Named customers5 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

One partnership is on record.

• Local Government Association (LGA)coreOthersThe Local Government Association operates the official LGPS member website (lgpsmember.org) and provides scheme information and guidance. The LGA is the national membership body for local authorities and plays a central role in scheme governance.

Scale indicators3 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• Teachers' Pension Scheme: Statutory UK defined benefit public sector pension scheme for teachers in England and Wales. Directly comparable to LGPS as a similarly structured DB scheme with statutory protections, member and employer contributions, and a national administrative footprint.
• NHS Pension Scheme: Statutory DB pension scheme for NHS employees in England and Wales, operating on a parallel framework with employer co-contributions, CARE accrual, and government backing. Closely mirrors LGPS's structural and operational model.
• Civil Service Pension Scheme: Statutory DB pension scheme for UK civil servants. Shares LGPS's DB accrual, employer co-contributions, and statutory governance, making it a close functional and structural peer.
• Universities Superannuation Scheme (USS): DB pension scheme for UK higher education sector, with defined benefit accrual, employer co-contributions, and statutory-style protections. Comparable in scheme architecture and member-facing communications infrastructure.

Broad incumbents

• National Employment Savings Trust (NEST): UK-wide workplace pension scheme used for auto-enrolment, especially in the private sector. Adjacent rather than directly competing, but operates in the same UK occupational pension market with public-policy alignment.

Regional players

• Scottish Local Government Pension Scheme (Scottish LGPS): Equivalent local government DB pension scheme covering Scottish local authority employees. Operates the same CARE-style DB structure but is administered separately under Scottish regulations, making it a direct regional peer to LGPS England & Wales.
• Northern Ireland Local Government Pension Scheme (NILGOSC): Statutory DB pension scheme for local government employees in Northern Ireland. Same fundamental purpose and DB design as LGPS but administered under Northern Ireland's distinct regulatory regime.

Others

• The Pensions Regulator: UK regulatory body overseeing workplace pensions including LGPS-adjacent trust-based arrangements. Comparable as a thematic peer in the UK occupational pension ecosystem, but does not itself administer member benefits.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights5 records

Customer concentration

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Local Government Pension Scheme