Glasgow City Council manages £12 billion pension surplus in LGPS
What happened
The Strathclyde Pension Fund, which is administered by Glasgow City Council, has accumulated a surplus of £12 billion beyond what is needed to pay its near-300,000 members' pensions. This fund is part of the Local Government Pension Scheme (LGPS), which holds excess funds of at least £150 billion overall. Council tax payers contribute approximately £2 billion of the £10 billion employers pay into the LGPS each year.
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Why it matters
The record funding level of the LGPS has sparked debate regarding the ownership and use of these large surpluses. Experts suggest that cash-strapped local authorities should allocate the excess funds to services benefiting council taxpayers, such as social care or infrastructure maintenance.
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Who's involved
- Glasgow City CouncilAdministers the Strathclyde Pension Fund, which holds the surplus.
- Minister for Pensions and Ageing SocietyIs subject to policy pressure regarding the LGPS surplus and contribution holiday.
- Scottish GovernmentThe proposed pension contribution holiday could constitute a major funding policy shift for local government.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Glasgow City CouncilSpeculative
Could redirect surplus funds to local services, potentially affecting the supply of services like social care or infrastructure maintenance.
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The entities involved
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Glasgow City Council
Scottish unitary authority council in Glasgow, Scotland, UK