At a meeting last week, employers agreed that arrangements needed to change since workers moving from the council scheme to the private sector lost benefits.
A report on options for change will be considered by the UK Steering Committee and Trades Union Congress joint group next week.
Admitted body status for businesses, which has been promoted by unions, is one of the options. A suggested alternative is a single 'mirror image' scheme for contractors.
The TUC's submission to the government argued for either admitting contractors to the local government scheme or requiring a comparable scheme, to be judged by government actuaries, he said.
The T&G has lobbied hard for admitted body status. National secretary Jack Dromey said it remained the best option, 'but we will examine with an open mind any alternative proposals'.