Official Statistics

Local government pension scheme funds for England and Wales: 2023 to 2024 technical notes

Updated 28 November 2024

Applies to England and Wales

1. Data collection

The Ministry of Housing, Communities & Local Government (MHCLG) data collection obtains data on the administration and fund management of the Local Government Pension Scheme via the SF3 (Pension) form. The SF3 (Pension) form was issued in July 2024 to all LGPS administering authorities in England and Wales.

The statistical release for 2023-24 containing aggregate data collected was published on 24 October 2024.

This statistical release has been published as Official Statistics.

2. Data quality

2.1 Things to note on this release

This release has been compiled by the Ministry of Housing, Communities & Local Government (MHCLG) and provides information on Local Government Pension Scheme (LGPS) funds in England and Wales that were collected on the SF3 (Pensions) 2023-24 form. Forms were submitted by all 86 Administering Authorities in relation to 87 funds. This covers all members of the LGPS including the Environment Agency, who have an active fund and a legacy closed fund. The Environment Agency is a member of the Local Government Pension Scheme but, prior to 2022-23, had been considered out of scope of the MHCLG data collection. However, in response to a user request, their funds are now included and they have provided data to MHCLG on a voluntary basis. Fully completed returns were received for 81 authorities, where the remaining 6 authorities left the new, optional part of the form on investments data incomplete.

Authorities were asked, where possible, to submit their data based on audited accounts. However, due to ongoing delays to local authority audits, 73 funds’ SF3 form data were submitted based on their authority’s provisional accounts. Authorities will be asked to submit revised figures based on their audited figures, if significantly different, at a later date.

For the first time in 2023-24, investments data has been collected on a voluntary basis. These reported figures cover asset values broken down by asset class and pooling arrangements, by UK asset class and pooling arrangements, and net savings from pooling. Data has been provided by 81 authorities, so while aggregates will not be compiled, we will publish the data provided after validation has been completed.

2.2 Quality assurance

This Statistical Release contains Official Statistics and as such has been produced to the high professional standards set out in the Code of Practice for Statistics. Official Statistics products undergo regular quality assurance reviews to ensure that they meet customer needs.

The forms should be completed in accordance with the guidance provided, however this guidance is open to interpretation by local authorities when they complete the forms.

Figures are subjected to pre-defined validation tests both within the form itself, so while the form is being completed by the authority, and then by the Ministry of Housing, Communities & Local Government as the data are received and stored.

Finally, the release document, once prepared, is also subject to peer review before being cleared as fit for the purposes of publication.

2.3 Imputation

No imputation has been required for this release.

2.4 Compliance with the Code of Practice for Statistics

These statistics follow the Code of Practice requirements for trustworthiness, quality and value. The statistics are pre-announced for regular annual publication and are only shared prior to release with the published pre-release access list. The statistics are quality assured as described above. The data we publish are those required for Ministers and local authority users to understand relevant information about the Local Government Pension Scheme, as described below.

3. Definitions

A list of general terms relating to local government finance is given in the glossary of Local Government Financial Statistics England No24 2014. The most relevant and up to date terms for this release are explained below.

3.1 Administering authority

A body responsible for administering a Local Government Pension Scheme (LGPS) fund on behalf of its members who may be drawn from a number of local authorities and other public service employers.

3.2 Admitted bodies

When an employer participating in the LGPS enters into an outsourcing contract with a private contractor, the contractor must either provide transferring public sector staff with future pension arrangements which are “broadly comparable” to the LGPS or allow transferring staff to continue as active members of the LGPS. If the contractor wants to allow transferring staff to continue as active members of the LGPS, it must apply to become an “admitted body” i.e. a participating employer in the LGPS. It does this by entering into a legally binding contract (an “admission agreement”) with the administering authority and, if different, the local authority which is awarding the contract. The admission agreement sets out the terms on which the private contractor may participate in the LGPS and which employees may become members of the LGPS.

3.3 Contributions

The level of contributions paid by scheme members is determined by the band of pensionable pay specified in Scheme regulations. The rate paid by individual participating employers is determined by local fund actuaries at each Scheme valuation and set for the subsequent triennium period. Where appropriate, these rates may be phased in over the three year period. Scheme regulations do allow for these rates to be revised between triennial valuations in prescribed circumstances.

3.4 Flexible retirement

This applies to a member who had attained the age of 55 and who, with his employer’s consent, had reduced their hours of work (or the grade in which they were employed) and was permitted by that employer to receive all or part of their benefits under Regulation 30(6) of the 2013 Pension Regulations.

3.5 Former employees entitled to deferred benefits

Members who leave the scheme having completed the minimum period of service but who are not entitled to the immediate payment of a pension benefit, are awarded a deferred benefit which, under normal circumstances, becomes payable when the person reaches their normal retirement age. Early payment of these benefits is allowed from age 55, and this is when employees ask their former Scheme employer’s consent for their deferred pension to be brought into payment, albeit actuarially reduced.

3.6 Ill-Health retirement

Under the 2007 and 2008 regulations, which came into effect on 1 April 2008, there are now three levels of ill-health retirement pension payable. These levels depend on the extent to which the incapacitating condition which gave rise to the termination of employment in local government prevents the scheme member from obtaining gainful employment in the general workforce.

3.7 Local Government Pension Scheme (LGPS)

The pension funds in the Local Government Pension Scheme operate under regulations made under the Superannuation Act 1972. Schedules to the regulations list the scheme employers, see section 4 of the release to see the make-up of the employers covered by the LGPS. There are 77 pension funds in the LGPS in England at 1 April 2022 and 8 in Wales, each administered by an administering authority. The Environment Agency has two funds, an active fund and a closed legacy fund, which are part of the LGPS. These include members in both England and Wales.

The assets of the pension funds are for meeting the future pension liabilities of the funds and are part of the financial corporations sector in the National Accounts, not part of the local government sector. Pensions paid out under the scheme are therefore part of the expenditure of the pension funds, not of the local authorities that administer them. Employers’ and employees’ contributions, part of the income of the funds, are recorded as expenditure by local authorities in their revenue accounts, either directly or indirectly under employees’ expenses.

On 1 April 2008, the Local Government Pension Scheme (Benefits, Membership and Contributions) Regulations 2007 and the Local Government Pension Scheme (Administration) Regulations 2008 came into effect. This Scheme includes some new and different provisions which may affect comparison with previous data sets. Lump sum on retirement

Prior to 1 April 2006-07, scheme members on retirement became entitled to both an annual pension based on 1/80th of pensionable pay for each year of membership and a lump sum of three times that amount. Under the current regulations, entitlement is to a pension only based on a higher accrual rate of 1/60th but with the option to commute pension into lump sum.

3.8 Lump sum payable on death

This is payable at the discretion of the administering authority to either nominated individuals or dependants of a scheme member who dies in service. Prior to 1 April 2008 this was 2 times final pay. When the 2007 and 2008 regulations came into effect on 1 April 2008, this increased to 3 times final pay.

3.9 Pension arrangements for fire fighters, police and teachers

Separate arrangements apply for the pensions of the police, fire fighters and teachers. The police and fire fighters’ pensions are provided through unfunded schemes administered locally, and the cost of police and fire fighters’ pensions are therefore included in local authority expenditure. Teachers’ pensions are provided through a notionally funded scheme administered by the Department for Education (DfE). There is no fund of assets, and teachers’ pensions are paid by the DfE. Employers’ and employees’ contributions are paid by local authorities to the DfE and are recorded as expenditure in their revenue accounts.

It should be noted that non-operational staff in the police, fire and rescue service support staff, and non-teaching staff in the education sector are covered by the Local Government Pension Scheme.

3.10 Refunds of contributions

Contributions refunded when a person leaves a pension scheme before completing a minimum period of service. Under earlier schemes, a refund of contributions could be paid to those leaving the scheme with less than 2 years’ service. Under the 2008 scheme, a refund of contributions can only be made to a person who has been a member of the scheme for less than 3 months.

3.11 Transfer Values

A cash value assigned to a person’s pension pot that is transferred with them when they move from one pension fund to another.

4. Revisions policy

This policy has been developed in accordance with the UK Statistics Authority’s Code of Practice for Statistics and the Department’s Revisions Policy.

It covers two types of revisions that the policy covers, as follow:

4.1 Non-Scheduled Revisions

Where a substantial error has occurred, as a result of the compilation, imputation or dissemination process, the statistical release, live tables and other accompanying releases will be updated with a correction notice as soon as is practical.

4.2 Scheduled Revisions

Where an authority has provided provisional data and their audited data are significantly different, they will be asked to resubmit their figures. We will then revise this release, but we do not expect any major change in the aggregate totals.

4.3 Revisions in this release

There were no revisions to data submitted for previous years.

5. Other information

5.1 Uses of the data

The data in this statistical release are essential for several different purposes. A central and immediate purpose is to provide Ministers with information about the LGPS. The data are also used by local authorities, their associations, and regional bodies. In addition, the data provides a benchmark on the administration and fund management of the LGPS. The data are also used in compiling the National Accounts and to show the role of pension funds in the economy.

5.2 Related Statistics

The Home Office also collect and publish data on the Firefighters’ pension scheme.

5.3 Devolved administration statistics

Data for 2023-24 and comparisons with previous years for England and Wales separately can be found at the main release for Local government pension scheme statistics.

The Scottish Government also collect local government pension fund data.

5.4 User engagement

Users are encouraged to provide feedback on how these statistics are used and how well they meet user needs. Comments on any issues relating to this statistical release are welcomed and encouraged. Responses should be addressed to the “Public enquiries” contact given in the “Enquiries” section below.

See the department’s engagement strategy to meet the needs of statistics users.

5.5 Enquiries

Media enquiries:
0303 444 1209
Email: [email protected]

Public enquiries and Responsible Statistician:
Jo Coleman
0303 444 2141
Email: [email protected]