The Local Government Pension Scheme is a statutory final salary scheme and the benefits are guaranteed by law.
It is a contracted out scheme, which means it meets the requirements of the Department for Work and Pensions, because its benefits are at least as good as their model scheme. So as a member, you are taken out of the State Second Pension called S2P, and you pay less National Insurance.
The Scheme rules are written by the Office of the Deputy Prime Minister, and are passed by Parliament.
About the Fund
The Dyfed Pension Fund was created in 1974 following local government reorganisation where the Administering Authority was Dyfed County Council. On that body's abolition in March, 1996 responsibility for the Fund transferred to Carmarthenshire County Council.
The Dyfed Pension Fund is one of many local authority pension funds throughout the country, which follow the rules of the Scheme. Membership is enjoyed by people who work for Ceredigion, Carmarthenshire and Pembrokeshire County Council, as well as a wide range of other organisations such as local colleges, Town and Community Councils etc.
About Carmarthenshire County Council
Carmarthenshire County Council administers the Fund and is involved in every stage of your membership. This necessitates working closely with your employer to ensure the accurate and timely flow of information. We are responsible for setting up your member record when you join, making sure it is updated during employment based on information provided by your employer, calculating your benefits, and finally paying them to you. We are also able to arrange transfers to and from other pension schemes and provide options to increase your benefits.
Employing Authority Roles
While Carmarthenshire is the body charged with managing the administration of the Dyfed Pension Fund each Employer has key roles and areas of responsibility. Many of the key decisions which affect pensions are taken by the Employer.
It is the Employer who appoints individuals, decided their hours of work, rate of pay and to some extent when they leave.Other employment related issues which can affect or influence pension benefits cover periods of unpaid leave whether this results from Strike action to breaks in service following Maternity.
It is also the Employers decision whether an individual can retire early and access their pension. As a result, many of the queries or questions which on face value relate to pensions, more properly should be raised with the employer where the point of contact is usually their Payroll or Personnel Office.
Managing the Fund's money:
Carmarthenshire is responsible for the investment of the Fund through the Pension Fund Panel. The panel is made up of three Carmarthenshire Councillors who are advised by the Director of Resources and an independent investment expert.
The Pension Fund Panel meets quarterly and reviews the performance of the Fund, decide on the strategic direction of all matters relating to the investment of the fund, and monitors all aspects of the investment function.
The majority of the Funds investment is undertaken by Barclays Global Investors. They are responsible for maximising returns without over exposure to risk whilst complying with the clearly defined investment structure directed by the Pension Fund Panel. The remainder is invested by our in-house investment team.