There has been a lot of news activity lately about the fall in global stock markets. As a scheme member or pensioner in the Fife Pension Fund you will be naturally concerned as to whether this will affect your pension rights or your pension in payment.
The short answer is no.(1)
The benefits provided by the Local Government Pension Scheme are not linked to stock market performance and are guaranteed by statute.
LGPS Scheme members can therefore be assured that both their contributions and their pension, whether in payment or built up to date, will be unaffected.
Whilst it is true that the pension fund’s assets will have fallen in the past few weeks, the Fund continues to be well positioned. The Fund is a long term investor with strong cashflows and under no pressure to sell off any of its assets. The Fund is therefore able ride out short term market turbulence until more stable financial conditions return.
(1) The exception to this is where you have Additional Voluntary Contributions (AVCs) through the facility we offer with Standard Life or Prudential. Depending on the specific fund you are invested in, your Fund value may have reduced.