COVID-19 LGPS and stock markets
I’ve heard about the fall in global stock market values and wondered if my pension is safe?
Yes, your local government pension is safe
You may have seen many articles in the media about the fall in share prices around the world, as companies struggle to cope with the impact of the coronavirus and wondered just how secure your pension is from the Warwickshire Pension Fund.
The Warwickshire Pension Fund is part of the Local Government Pension Scheme (LGPS). The LGPS is a statutory defined benefit scheme which means that your pension will continue to be worked out using a set formula and it is guaranteed by Government. LGPS is funded by pension contributions from active members and employers in the scheme. LGPS investments are long-term in order to meet current and future benefits for many years to come.
The Warwickshire Pension Fund manages risk by investing in a wide number of assets all over the world, including shares or equities, property, government bonds and company bonds. This means that a short-term decrease in the value of one type of asset has limited impact in the long-term.
The Fund has experienced economic downturns in the past and a long-term view must be taken of investment returns.
Despite the uncertainty you may hear from the media concerning global markets, you should not be unduly concerned about your local government pension from Warwickshire Pension Fund.
It is as secure a pension as it’s possible to have.