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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.
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.
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.
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.
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.
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.
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.
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.
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.
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".
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 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
The New Look LGPS in Scotland from 1 April 2009