Public Sector Pensions Reform
Lord Hutton published his final report on the future of public sector pensions on 10 March 2011, which includes the Local Government Pension Scheme (LGPS). His report makes broad recommendations which are subject to consultation and acceptance by the Government.
The purpose of this section is to provide you with information and updates on the proposals outlined in the Hutton Report. On this page you will find a up to date newsfeed providing you with the latest headlines conerning Public Sector Pensions Reform.
You can use the navigations to the left to find more information split into the following categories:
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The Hutton Report
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Hutton Report Recommendations
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The Deal
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How a CARE Scheme Works
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Pensions Reform Timeline
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Frequently Asked Questions
Latest News
New Local Government Pension Scheme 2014 - Communications Update
LGA produce a communications update regarding the progress of the joint principles document which was published on 21 December 2011.
The New LGPS 2014 project - this is the project by which agreement will be reached on the elements to make up the new scheme and the mechanisms for management and governance of the scheme in the future. The documentation relating to the project including the Plan, PID and Risk Register can be found by following the lnks below:
The communications update consists of the following documents:
| Project Initiation Document (PID) PDF 39kb
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| Project Plan PDF 15kb
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Risk Register PDF 11kb
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Employer and Union agreement on the future of the LGPS
LGA Media Release 21 December 2011 - way forward for Local Government Pension Scheme agreed
Following the strikes which took place on 30 November the Government made an improved offer to Unions concerning the Public Sector Pensions Reform. On 21 December Danny Alexander, the Chief Secretary to the Treasury announced that an agreement had been reached between the Government and Unions.
Please click here to read the full press release.
A summary of this agreement is detailed below:
• New regulations regarding the new scheme to be laid before Parliament in April 2013.
• New scheme to be introduced from 1 April 2014
• Any increases in contribution rates to also be introduced from 1 April 2014 and not 1 April 2012.
• LGPS to change from Final Salary scheme to Career Average Revalued Earnings (CARE) Scheme. It is important to note that membership built up to 31 March 2014 will still be calculated on a Final Salary basis.
• It has been proposed that members who are within 10 years of retirement at 1 April 2012 will be protected from these changes (however this is still in negotiation and yet to be confirmed).
• The LGPS retirement age will be flexible and linked to the State Pension Age
The statement can be viewed in full here
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