Managing Risk in the Local Government Pension Scheme

The management of risk is a key responsibility of those charged with the governance of a public sector organisation.

This extends in equal measure to local authorities that act as administering authorities of the LGPS, where the pensions committee (or equivalent) as the body charged with governance of the authorities’ pensions operations, take on the responsibility ensuring that there is effective risk management over those operations.

Consequently the need for effective risk management is reflected throughout guidance and regulation in the LGPS.

In this publication we examine the basics of risk, risk policy formulation and risk management, and how this applies in the context of the local authority as an administrator of the LGPS.