Local government pension scheme (LGPS) funds are less concerned than the average scheme about the strength of their employer during the coronavirus crisis, according to data from the Pensions and Lifetime Savings Association (PLSA).

An April PLSA survey found that no LGPS respondents were somewhat or moderately concerned about the strength of their employer, compared to 10 per cent and 8 per cent respectively among the group’s overall membership.

Concern was found to have decreased among LGPS funds as the crisis has continued, as a March survey saw 19 per cent of LGPS respondents state they were somewhat concerned and another 10 per cent had said they were moderately concerned.

However, the survey found that LGPS funds' operating procedures are not as sustainable as those of their contemporaries amid the threat of Covid-19, with 13 per cent of LGPS respondents concerned that current procedures could not continue for more than three months, compared to just 8 per cent of total respondents.

The survey results were revealed by the PLSA as part of the organisation’s series of webinars for local authority members.

When asked what priorities the PLSA should press for to assist its members, 93 per cent of LGPS members cited the ability to waive or flex general timelines and standards.

More than two thirds (67 per cent) also wanted better guidance from The Pensions Regulator (TPR) and 20 per cent sought greater flexibility from legal waivers.

Issues more commonly reported by LGPS schemes included pressures of remote working, raised by 57 per cent, staff shortages, raised by 40 per cent, difficulty servicing member requests, raised by 60 per cent, and funding concerns, which was referenced by 38 per cent.

Key issues raised by the PLSA’s LGPS members included clarity on whether contributions could be paused, guidance on how to handle upcoming valuations, 2020 reporting deadline flexibility and whether temporary stops to transfers are permitted where scams are a concern.

Almost two thirds (64 per cent) of LGPS respondents said coronavirus was having little or no impact on the running of their scheme, compared to 62 per cent of total PLSA membership, while 100 per cent said their contingency plans were working well.

All LGPS members were also confident of meeting payment obligations to members over the coming months.

PLSA policy lead, LGPS and defined benefit, Tiffany Tsang, said news from LGPS schemes appeared to be positive so far, pointing out that: “The key metric for success is whether or not we can pay benefits to members and there isn’t any problem with that at the moment which is really fantastic to hear.”

Tsang concluded: “I think the overall story to take away is that, so far, LGPS is faring well. The LGPS is resilient and this is really news to celebrate. I think this comes back to the hard work that everyone has put in before the virus struck.”

TPR policy lead, Nick Gannon, stated: "We are working to pull together a public service and LGPS-specific summary of everything, so that you can find everything in one place rather than scanning through half a dozen bits of our Covid guidance. With any luck that will come out within the next week to 10 days."

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