Council pension schemes could fall in value

Following the news that the UK has voted to leave the EU, council leaders have warned that the Local Government Pension Scheme could fall in value.

The Welsh Local Government Association (WLGA) claimed that a prolonged and continual collapse of the stock market could cause ‘huge’ problems for the pension scheme.

Cllr Bob Wellington, leader of the WLGA, said: “As a responsible employer local government also has a duty to highlight potential difficulties for our workforce. For example, any prolonged collapse of the stock market will signal huge problems for the £13 billion Local Government Pension Scheme in Wales which is fully funded and based on market investment.

“With an actuarial valuation due this year it is vital that confidence is returned as soon as possible, otherwise millions of pounds will be lost for the schemes pensioners.”

On behalf of the WLGA, Wellington also expressed his support for a revision of the Barnett formula and a new financial settlement for Wales.