Local Government Pension Scheme in England and Wales - Access and Fairness

Background

When a member of the LGPS dies, their survivor (surviving spouse, civil partner or eligible cohabiting partner) will receive pension benefits, in the form of a survivor’s pension (regular monthly payment). In some cases, their beneficiary may receive a death grant (lump sum). This applies whether the member was an active, deferred, or pensioner member.  

This chapter of the consultation sets out proposed changes to the LGPS in relation to survivor benefits. Currently, there are cases where survivors of same-sex marriages and same-sex civil partnerships are eligible to receive a more generous pension entitlement than survivors of opposite-sex marriages and opposite-sex civil partnerships. This does not reflect the government’s commitment to equality regardless of marriage or partnership status. In addition, parts of the LGPS Regulations still require that cohabiting partners of LGPS members would only be eligible for survivor benefits if a signed declaration form nominated them as the survivor. This nomination requirement has been disapplied by the courts. In relation to death grants, current regulations require a member to have died before age 75 for their beneficiary to receive a death grant. Changes to the Finance Act 2004 mean that age cap is no longer appropriate. Lastly, the LGPS Regulations currently require that a death grant has to be paid to personal representatives if not paid within two years of member death. This affects the charge applied to it even though the Finance Act (No.2) 2015 means this is no longer required. 

The government proposes to equalise the survivor pension entitlement of all members, regardless of the sex of the eligible member or their survivor, and to update regulations on survivor benefits and death grants in relation to these points. Further detail on the background and proposals is set out in the rest of this chapter.  

Summary of proposals

The proposals are summarised below: