Local Government Pensions Scheme in England and Wales - Scheme Improvements (Access and Protections)

Introduction 

1. This consultation covers four areas relating to the Local Government Pension Scheme in England and Wales (‘the LGPS’). It follows on from the “Local Government Pension Scheme in England and Wales: Access and Fairness” consultation launched by government earlier this year (1). 

2. Subject to consideration of responses to the consultation, the government intends to proceed with statutory instruments to implement changes to the LGPS Regulations. Draft regulations for two of the proposals - LGPS access for mayors and councillors and New Fair Deal – have been published alongside this consultation. Draft regulations for the other two proposals – Normal Minimum Pension Age and applications for directions – will be published for consultation later in the year, and in this consultation we invite views on the principles behind our proposals.  

3. The government welcomes comments on the legal drafting and will continue to work with the Scheme Advisory Board and others before laying a statutory instrument.

4. In summary, the policy areas in this consultation are: 

1. Normal Minimum Pension Age – proposals to amend the Normal Minimum Pension Age to age 57, following the Finance Act 2022, and to ensure that members with a Protected Pension Age can still take pension benefits at that age except for members that have transferred benefits into the LGPS; 

2. Mayors and councillors – proposals to extend access to the scheme for councillors and mayors in England; 

3. Academies and applications for directions – proposals to put criteria for applications for directions into legislation, and to remove SoS consent where all criteria are met; 

4. New Fair Deal – proposals to implement Fair Deal protections in the LGPS, aligning across government in ensuring continued access to the LGPS for outsourced workers.