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News and updates on the LGPS

The new LGPS 2014 project

Following the acceptance by government of a principles document submitted by the Local Government Association, UNISON and GMB on how to take forward the reform of the Local Government Pension Scheme (LGPS) in England and Wales, a project has been set up to reach agreement on the elements of the new scheme together with the management and governance of the scheme going forward.

To find out about the new LGPS 2014 project

 

Heads of Agreement announced for LGPS reform

On 22nd of December an agreement reached by the Local Government Association (LGA) and local government unions on how to take forward the future reform of the Local Government Pension Scheme (LGPS) in England and Wales was accepted by the Government. The agreement consists of:

  •  A set of principles covering:

          - the design of a new LGPS
          - the future management of the cost of the scheme, and
          - governance of the LGPS

  • A timetable for implementing the new scheme by April 2014
  • A project outline for managing the process of agreeing, by April 2012, the ‘big ticket’ elements of the new scheme.   

The agreement together with the accompanying ministerial statement can be found here. 

All parties involved in these continuing discussions are committed to ensuring that whatever the outcome the LGPS will still be one of the best pension schemes available.

Here we attempt to answer some of the questions about the agreement that have been raised.


 

Reform of Public Sector Pensions

Proposals for changes to the LGPS for employees in England or Wales

Following recommendations made by the Public Service Pension Commission, headed by Lord Hutton, the Government is looking to reform the Local Government Pension Scheme (LGPS), along with other public service schemes. As people are living longer, and so drawing a pension for longer, the Government is proposing that changes should be made to the LGPS.

For information on the reform of public sector pensions and the Government's proposals   

LGPS for employees in England and Wales - Employers submit pension proposals to Secretary of State

The Local Government Group has written (on 21 September) to the Secretary of State for  Communities and Local Government setting out its proposals for a package of measures to secure short term savings by 2014/15 that generate the equivalent of a 3.2% increase in employee contribution rates.

For information on these proposals

 

Update on the Public Service Pension Commission for employee members of the LGPS

The Public Service Pension Commission headed by Lord Hutton and created by the Government to undertake a “fundamental, structural review of public service pensions”, including the Local Government Pension Scheme (LGPS), has issued it’s final report which includes recommendations to the Government for the future design of public service pension schemes. 

Here we take a brief look at how the recommendations made by the Commission may impact on employee members of the LGPS.

February 2011 update

There have been recent changes affecting employees who are members of the LGPS and developments to pension provision that may impact on members of the LGPS. 

Pay bands for LGPS contribution rates have been updated from April 2011, the Government has announced details of the increase to State pension age, that it will restrict the amount of tax relief available on pension contributions by reducing the amount the value of pension savings can increase in any one year before a person becomes liable to a tax charge, and has confirmed it plans to phase out the default retirement age between 6 April 2011 and 1 October 2011. 

Find out more information on these changes

Changes to the LGPS for employees in England and Wales

There have been recent changes to the LGPS for employees in England and Wales introduced by the Local Government Pension Scheme (Miscellaneous) Regulations 2010. The changes are effective from 30 September 2010 unless stated otherwise.

Find out about the changes

October 2010 update

There have been recent developments to pension provisions that may impact on members of the LGPS.

The Public Service Pension Commission has issued it's interim report, the Government announced in its October 2010 Spending Review the outcome of its review of the date at which State pension age will increase from age 65 to age 66, and the Government has now announced how it intends to restrict tax relief on pension contributions.    

Find out more

June 2010 Budget

The Government announced changes to pension provisions in the June 2010 budget that may impact on members of the Local Government Pension Scheme (LGPS).

The Government has announced that it intends to change the measure it uses for cost of living increases to public sector pensions, that it is going to review the date at which State pension age will increase from age 65 to age 66, and has created a Public Service Pension Commission to undertake a "fundamental, structural review of public servic pensions". 

Find out more

Changes to Dependant's Benefits - Employees in England and Wales

There have been recent (31 December 2009) changes to the Local Government Pension Scheme (LGPS) which may affect the survivor's pension payable on your death if you are in a registered civil partnership, or you have nominated a co-habiting partner to receive a survivor's pension, and you have LGPS membership before 6 April 1988.

These changes alter the way that a survivor's pension for a registered civil partner is calculated, and introduce a new option to buy extra survivor's pension for a nominated co-habiting partner.

These changes apply to employees in England and Wales who have paid into the LGPS on or after 1 April 2008.

Employees in England and Wales - find out about the changes  

The New look LGPS 

As part of a general review of public sector pension schemes, the Local Government Pension Scheme (LGPS) for employees in England and Wales changed from 1 April 2008 and the Scottish Ministers introduced changes to the way the LGPS works in Scotland from 1 April 2009.

The New Look LGPS in England and Wales from 1 April 2008

Here we take a look at the main changes that happened to the LGPS in England and Wales from 1 April 2008.

The New Look LGPS in Scotland from 1 April 2009

Find out about the main changes to the LGPS in Scotland from 1 April 2009.

 

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