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LGPS update
This page provides an update on the negotiations to reform the Local Government Pension Scheme (LGPS) in England and Wales, as at March 2012. This applies mainly to ATL members working as support staff, Soulbury paid staff and a large number of AMiE members.
Information here does not apply to Scotland as there are no plans, currently, to alter the scheme there. The Northern Ireland Executive has accepted that it has to make savings to all public sector pension schemes, but the Department of the Environment, which makes the regulations for the LGPS (NI), has yet to set out any details of changes to the scheme or increases to employees' contribution rates.
The negotiations on reforms to the LGPS are running on a different timetable and slightly different process to the Teachers' Pension Scheme.
The Local Government Association (LGA) and the recognised trades unions (Unison, Unite and GMB) have agreed to continue negotiating on the reforms, on the basis that the LGPS is different in nature to the other public sector pension schemes. These parties have reached agreement on the following points, the details of which to be discussed throughout early to mid 2012.
NILGOSC – the body which administers LGPS (NI) – has recommended that a similar approach is taken to redesigning the scheme in Northern Ireland so alternatives to increased contributions are explored to make the savings.
Key principles for the on-going negotiations
Legislation to be in place by April 2013 for implementation in April 2014.
Short and long term objectives to be met in a 'single step' approach.
Long-term reforms - new scheme design from 2014.
Short-term savings - delay contribution increases until that date, if required at all.
Keep Admitted Body Status (ABS) for organisations providing local government services with employees transferring from local government employers.
Scheme valuation to be carried out within timetable, with initial results by October 2013.
Shift governance from central to individual fund level.
Negotiate on changes from 2014, if these are required, rather than imposition.
An independent and robust equality impact assessment made of any changes proposed.
Make savings via improved efficiency of fund management and investment.
Principles on new scheme design
Introduction in April 2014.
Zero contribution increases for most members.
A career average revalued earnings scheme (CARE).
Include some elements of choice – explore flexibility in benefit level and contribution level to assist this aim, perhaps by providing a basic level of benefits for a lower contribution rate as a choice for members.
Normal Pension Age (NPA) to be linked to State Pension Age (SPA).
Benefits to be taken and actuarially adjusted, up or down, relative to NPA from age 55 to 75.
How to meet cost of ten-year protection - as in the other public sector schemes - to be confirmed by the Treasury.
Main agreements on new scheme design to be reached by September 2012. ATL is keeping a close eye on developments in the LGPS negotiations and will keep members updated via this page as they progress.