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

Background

126. Under the Public Sector Equality Duty (“PSED”), the government is required to have due regard to the need to: 

• eliminate unlawful discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010; 

• advance equality of opportunity between people who share a protected characteristic and people who do not share it, and 

• foster good relations between people who share a protected characteristic and people who do not share it. 

127. The protected characteristics which should be considered are: 

• age 

• disability 

• sex 

• gender reassignment 

• marriage or civil partnership 

• pregnancy and maternity 

• race 

• religion or belief 

• sexual orientation 

128. The government has access to up-to-date data on the age and sex of LGPS members, but not complete or up-to-date data on the other protected characteristics. Outlined below are the PSED considerations arising from the data the government does have, but respondents to this consultation are encouraged to share any evidence they may have on the potential impact of the proposals on any of the above protected characteristics. 

Normal Minimum Pension Age 

129. Members of the scheme who are approaching their NMPA, such as those in their early 50s, are those most affected by the government’s proposals, since they are closest to their NMPA and have less time to plan ahead. The most relevant protected characteristic is age.  

130. The proposals in this document follow from the decision to raise the NMPA, taken through the Finance Act 2022. For members without a protected pension age, such as a member in their early 50s who joined the LGPS after November 2021, proposals will mean that pension benefits cannot be taken at 55 anymore. This is a long-known change, originally announced in 2014.  

131. The proposals will impact men and women equally as the NMPA is the same for both genders. The government does not expect any particular impacts on other groups sharing protected characteristics, as the NMPA applies equally to all. 

LGPS for mayors and councillors 

132. The proposals for mayors and councillors are about extending pension access to persons who did not previously have access to the scheme. As such the government considers the proposals to have positive impacts only. These positive impacts will be on those who are councillors and mayors in England, and so reflect the characteristics of that cohort. The LGA 2022 census of councillors showed that 59% of councillors were male, 92% white and the average age is 59.5. The proposal is intended to encourage more younger councillors to serve.

Academies 

133. The proposals for academies and direction orders are about efficient administration, and do not impact pension benefits for individuals. Therefore, the government does not consider there to be impacts on groups sharing protected characteristics. 

New Fair Deal 

134. The decision to outsource contracts is taken by local authorities, within the rules and spirit of the LGPS, but without government intervention or influence. 

135. The proposals in this document would apply to all workers outsourced from local government and as such, which the government does not believe affects particular groups disproportionately. As such, the proposed changes are not seen to affect any groups in particular.