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

Background

74% of the 6.7 million members of the LGPS are women, and there is a significant gender pension gap. Analysis by the Government Actuary’s Department (GAD) has shown that for the post-2014 Career Average Revalued Earnings scheme, the average pension accrued is 34.7% lower for a woman than a man, and for the pre-2014 final salary scheme the gap is 46%.  

The outcome is that millions of low-paid women working to provide local public services have worse pensions than their male counterparts. Many of the reasons for the gap are not in scope of MHCLG’s role as the responsible authority for the LGPS, such as greater part-time working and caring responsibilities for women. Pensions are a function of pay, and so any gender pay gap will always translate to a gender pension gap. 

The government believes that, beyond differences in pay and part-time working, periods of a woman’s career when she is not accruing a pension contribute significantly to the gap. Across the course of a woman’s life, such gaps – such as taking unpaid maternity leave or taking an unpaid absence to look after children or perform other caring responsibilities – all add up. The government believes there are four specific areas that LGPS requirements could be changed to address this gap.