Analysis and expertise from the Government Actuary's Department
(GAD) supports a consultation on the Local Government Pension
Scheme (LGPS) (England and Wales) improvements covering access
and protections.
“Local Government Pension
Scheme in England and Wales: Scheme improvements (access and
protections)” has been issued for consultation by the
Ministry of Housing, Communities & Local Government (MHCLG).
The consultation runs until 22 December 2025 and is open to
everyone, though particularly relevant to LGPS members, employers
and administering authorities.
The consultation follows reforms earlier this year focusing on
access and fairness, which addressed key issues including the
gender pension gap and survivor benefits.
GAD analysis
GAD supported the MHCLG pensions policy team with comprehensive
analysis across the consultation's 4 key policy areas:
- Implementing new Fair Deal protections for outsourced workers
- Extending LGPS access to mayors and councillors in England
- Simplifying academy applications for pension fund directions
- Normal minimum pension age changes following the Finance Act
2022
GAD's analysis included cost impact assessments of proposed
changes and illustrations of how these could benefit individual
scheme members. The department provided actuarial expertise on
the estimated £40m to £45m annual increase in employer
contributions from extending access to elected representatives.
Will King, senior policy lead at MHCLG, said: “These are
important proposals for the LGPS and developing them required
co-ordinating a multi-disciplinary team within government. GAD
has been a key partner, providing crucial analysis and insights
throughout the process.”
Strengthening protections
The LGPS serves over 6.7 million members with around £400 billion
of assets. Much of the consultation focuses on ensuring fair
access and strengthening protections for those who serve our
communities through public service.
A key proposal introduces new Fair Deal protections, aligning
local government with central government practice, by ensuring
outsourced workers maintain seamless access to the LGPS rather
than being offered alternative schemes. GAD will work with MHCLG
and stakeholders to develop detailed guidance supporting these
enhanced protections.
The consultation also proposes extending pension access to mayors
and councillors in England, bringing them into line with
Scotland, Wales and Northern Ireland where elected members
already participate in their respective LGPS arrangements.
