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

This consultation covers a range of proposals relating to the Local Government Pension Scheme in England and Wales (‘the LGPS’). 

The government believes that the LGPS is a good pension scheme which should be available to all those who provide the services for which local government is responsible. It provides security in older age for millions of members who have spent their lives in public service, many of whom have been low paid throughout their working lives. Much of this consultation focusses on equal access to the scheme and its benefits. 

Chapter 1 contains proposals to address survivor pensions and death grants, and aims to fix historic discrimination and ensure equal access to the scheme, regardless of the sex of the eligible member and those they leave behind on death.  

Chapter 2 contains proposals to address the Gender Pension Gap in the LGPS, with a focus on access to the scheme benefits for women. Whilst many of the causes for gender pensions gaps may lie in how society is structured and go beyond the LGPS, the government believes there are still steps that it can take to make progress now. 

Chapter 3 contains proposals related to people who opt out of the scheme. The government believes the LGPS is a good scheme and views  the number of members who opt out with concern. It proposes systematically collecting data about how many members are making this choice, and why.  

Chapter 4 contains proposals related to forfeiture, which may be used to remove benefit entitlements for those who have been convicted of crimes that bring public service into disrepute. The government’s proposals aim to tackle some long-standing issues with forfeiture in the LGPS. 

Chapters 5 and 6 do not directly relate to access to the scheme, but the government wishes to take the opportunity to make several technical changes, to improve the day-to-day running of the scheme. Chapter 5 covers the McCloud remedy, and aims to fix issues with the operation of the McCloud underpin that have only been identified now that administering authorities are working their way through remedy calculations. Chapter 6 covers a number of miscellaneous changes, brought to our attention by the Scheme Advisory Board (‘the SAB’). 

Finally, the government recognises that these proposals would lead to a large number of  changes, that would affect millions of members. Chapter 7 asks for opinions on the potential administrative impact. The government is particularly interested in hearing from those who administer the scheme on a daily basis. Since many of these proposals will affect individual members, chapter 8 asks for views on the government’s duty under Public Sector Equality Duty. 

Subject to consideration of responses to the consultation, the government intends to proceed with a new statutory instrument to implement changes to the LGPS Regulations. A draft Statutory Instrument has been published alongside this consultation. The government welcomes comments on the legal drafting and will continue to work with the Scheme Advisory Board (SAB) and others before laying a statutory instrument.