Local councillors in England now have access to the Local
Government Pension Scheme (LGPS) following the introduction of
new regulations.
The Government Actuary's Department (GAD) used actuarial analysis
to support a consultation about the change.
The development means scheme membership has been extended to
councillors, mayors, deputy mayors and London Assembly members in
England for the first time.
GAD's partnership with MHCLG
GAD supported the Ministry of Housing, Communities and Local
Government (MHCLG) pensions team throughout the development of
this policy. We provided actuarial
analysis, including modelling the likely additional annual
cost in extending scheme access.
The change aligns England with Scotland, Wales and Northern
Ireland, where elected members have continued to have access to
the LGPS.
The new rules took effect on the first Monday following the May
local elections. It means that service from that date onwards
will be pensionable in the scheme. Membership is on an opt-in
basis, placing particular importance on clear communication to
elected members about their options.
With the regulations now enacted, that analytical work has
contributed to a tangible change in public service pension
provision.
How GAD can help
GAD regularly supports pension policy decisions, especially where
clients are considering changes to:
- benefit design
- scheme eligibility
- the financial implications of extending membership to new
groups
Will King, Co-Head of Pensions at MHCLG said: “This change in
eligibility reflects the government's position that elected
leaders in England are dedicated public servants. Analysis from
GAD helped underpin the change, with clear evidence on the
costs.”
GAD actuary Garth Foster, who led on the work added: “GAD's
actuarial expertise can help government departments, trustees,
employers, and other stakeholders working through policy options.
“We help policy teams determine evidence-based decisions by
giving them a deeper understanding of cost and risk
implications.”
If you have plans, proposals or challenges in this space, we
would welcome the opportunity to discuss how GAD might support
you. Contact us at enquiries@gad.gov.uk.
