Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Changes proposed for sector pension scheme

  • Comment

A government consultation has been launched on changing local fund valuations in the Local Government Pension Scheme (LGPS) from a three-year cycle to four years.

There are also proposals for flexibility on exit payments, changes to employer contributions and to which employers are required to offer LGPS membership

The consultation paper said the government had already moved the LGPS scheme valuation to a four-year cycle and the proposed change was to ensure that scheme and local valuations were aligned.

It proposed that LGPS funds would become able to undertake interim valuations when circumstances change between valuations, and the widening of a power to amend an employer’s contribution rate in between valuations.

The paper said that for some employers, the cost of exiting the scheme can be prohibitive, as when the last active member leaves, the employer must pay a lump sum exit payment calculated on a full buy-out basis. It proposes two possible methods to avoid this ‘cliff edge.

There is also a proposal to remove the obligation on higher and further education institutions to offer LGPS membership and instead leave this for each body to decide.

The consultation runs until 31 July.


  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.