Latest News 

The following news is specific to the LGPS Pension Reform. All the latest details on the scheme reform can be located in this area.



Did you know that the LGPS is still be one of the best pension schemes in the UK?

Select here for the national LGPS site

June 2012 Consultation with employers on scheme reform

The Local Government Association is keen to ensure that all employers have the chance to comment on the proposals for the new LGPS 2014. LPFA will be issuing a response but individual employers are also encouraged to do so.
Please note that LPFA will be holding a special Employer forum on 25th July at 10am, Dexter House. To register for the event please contact Emily Sanders.
Employer consultation
Consultation form
Employer overview

May 2012 - Joint Statement released: Find out what the new LGPS could look like!

The Local Government Association and trade unions have today announced the outcome of their negotiations on the new LGPS proposals which will take effect from 1st April 2014. The aim was to develop a set of proposals to ensure that the LGPS continues to be sustainable into the future. The proposals will now undergo a period of consultation with union members and scheme employers.

LPFA will provide further explanation and guidance on the proposals in the coming weeks although there are already some useful documents on the Local Government Association website. Each of the proposals below has been broken down into more detail, along with a comparison of the current scheme vs the new scheme.


Proposals: The key proposals are:

  • A move from final salary to a pension based on career average earnings. This still provides members with certainty of benefits but they are based on average earnings over your career rather than your final salary.
  • An accrual rate of 1/49th. This is the rate at which a pension is built up and the current rate is 1/60th. This means that your pension will be built up at a faster rate than in the current scheme.
  • Pension age linked to your State Pension Age
  • Average employee contributions of 6.5% but with lower paid workers paying less, and higher paid workers paying more
  • An option for those thinking of leaving the scheme to pay half their contributions and receive half their pension, while retaining other benefits.
  • Protection for current members. All current members of the scheme's service prior to 1st April 2014 is protected. Protected past service will be based on final salary and current retirement age. There are also protections envisaged for those within 10 years of retirement as at April 2012.

PLEASE NOTE: These are proposals only at this stage and are subject to consultation. Please review the LGA website where you may find the Frequently Asked Questions particularly useful.

January 2012 - Broad agreement reached between unions and Government.

Following recent negotiations between Government, Local Government Group and Trades Unions it appears that a broad level agreement has been reached for future scheme reform. There will now be a one stage reform process rather than the previous proposal which was to consider short and long term reforms. Details of the agreement can be found on the Local Government Association website but the long term reforms will now be introduced in 2014 (a year earlier than expected) and the planned employee increase in April 2012 appears unlikely.

Key elements of longer term scheme reform still include a move to a career average scheme, with a retirement age in line with the state pension age. A list of question and answers has been developed for the new scheme including a definition of career average scheme, also known as CARE.