Prior to 1 April 2014, pension benefits under the LGPS were based on final pensionable pay and length of pensionable service, as summarised in the table below:
| Service pre 1 April 2008 | Service post 31 March 2008 |
|---|
| Pension | Each year worked is worth 1/80 × final pensionable pay | Each year worked is worth 1/60 × final pensionable pay |
| Lump sum | Automatic lump sum of 3 × pension. In addition, part of the annual pension can be exchanged for a one-off tax-free cash payment. A lump sum of £12 is paid for each £1 of pension given up. | No automatic lump sum. Part of the annual pension can be exchanged for a one-off tax-free cash payment. A lump sum of £12 is paid for each £1 of pension given up. |
From 1 April 2014, the Fund became a career average scheme, whereby members accrue benefits based on their pensionable pay in that year at an accrual rate of 1/49th. Accrued pension is updated annually in line with the Consumer Prices Index. Benefits for service prior to 1 April 2014 are protected and continue to be based on the table shown above.
The Fund provides an additional voluntary contributions (AVC) scheme for its members, the assets of which are invested and accounted for separately from the Fund. AVCs are used to secure additional benefits on a money purchased basis. The scheme providers are Scottish Widows and Utmost. Each AVC contributor receives an annual statement showing the amount held in their account and the movements in the year.
The council has delegated day to day management of the Fund to the Pension Fund Panel (the Panel), who decide on the most suitable investment strategy and set policy and have utmost responsibility to make investment decisions. The Panel reports to the council and obtains, as necessary, advice from the Fund's appointed investment advisors, fund managers and actuary. The Panel is made up of seven voting members and one non-voting member.
In line with the provisions of the Public Service Pensions Act 2013 the council set up a Local Pension Board to oversee the governance arrangements of the Fund. The Board meets on a quarterly basis and has its own Terms of Reference. Board members are independent of the Panel.
The Section 151 Officer is responsible for the preparation of the Pension Fund Statement of Accounts. The Audit Committee is responsible for approving the Annual report and Accounts for publication.
The LGPS (Management and Investment of Funds) Regulations 2016 require administering authorities to prepare and keep up to date a written statement detailing the investment policy of the Fund. The latest investment strategy (ISS) is publicly available on the council's website.