Contributions - Employers
Employers pay the balance of the cost of providing Scheme benefits. Every three years an independent review, known as a valuation, is undertaken to calculate how much each employer should contribute to the Scheme. This is outlined in a Rates & Adjustment Certificate that forms part of the formal valuation of the Pension Fund. The date of the last valuation was 31st March 2010 with employer contribution rates being set for the period 1st April 2011 to 31st March 2014.
In order that scheme benefits remain affordable, increases or decreases in the cost of providing those benefits may, in the future, be shared between scheme members and employers. This will be in accordance with government guidance. The Workforce Pay and Pensions Division for the Communities and Local Government issued a consultation document in February 2008 called "Sustaining The Local Government Pension Scheme in England & Wales". This document sets out the principles and propositions for analysis and comment on how best to provide a basis for the future cost-sharing the LGPS. This document can be viewed from the Publications page.
