Decision details

Proposed Changes to LGPS Regulations

Decision Maker: Pensions Committee

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No


The Committee considered this report presented by the Funds and Investments Manager that provided an update on proposed new regulations at various stages of development or implementation within the Local Government Pension Scheme (LGPS).


A recent review by the Government Actuary Department (GAD) had determined that the costs of the LGPS were now below the target rate. To address this, the Scheme Advisory Board had proposed the following improvements to the Scheme, which had been implemented on 1 April 2019:

·         Removal of Tier 3 Ill Health;

·         Minimum Death-in-Service lump sum of £75,000 per member (not employment);

·         Enhanced Early Retirement factors for all active members from 1st April 2019 to be applied to all service;

·         Revised member contribution rates and bandings, which take account of varying tax relief:

a) a 2.75% contribution rate for salaries between £0 and £12,850;

b) an expansion of Band 2, which will now include salaries between £12,501 and £22,500, and a contribution rate reduction from 5.8% to 4.4%;

     c) an expansion of the 6.8% contribution band from £45,200 to £53,500.


Members attention turned to the 3 main areas highlighted in the report for consideration, those being: the period review of the cost of public sector pensions; the review of the Fair Deal provisions that govern the protections afforded to staff when they ‘TUPE’ between employers; and the review of the length of the actuarial cycle and related changes.


There was a discussion of the proposed changes and the Funds and Investments Manager answered questions and provided more information. It was noted that the actual cost of benefits against the projected cost of benefits had resulted in the scheme being ‘cheaper’ to employers than projected. It was also proposed to extend the period between actuarial valuations from every 3 years to 4 years, although there would be flexibility to do an interim valuation if required.


The Committee accepted the report, noting proposed changes to exit payments and Further Education establishments.

Publication date: 24/06/2019

Date of decision: 07/06/2019

Decided at meeting: 07/06/2019 - Pensions Committee

Accompanying Documents: