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To Addressees |
Head
of Local Government and Firefighters’ Pension Schemes Division Zone
2/F8 Ashdown
House 123
Victoria Street London
SW1E 6DE Direct
line: 020 7944 5970 Fax: 020 7944 6019 Web
sites: www.dclg.gov.uk |
LOCAL GOVERNMENT PENSION SCHEME IN ENGLAND AND WALES
OPTIONS FOR DISCUSSION
With the agreement of Ministers, I enclose a consultation document which sets out a number of
costed options to assist in the development of a new-look Local Government Pension Scheme
for introduction in April 2008.
Your views on the document’s options and responses to the specific questions posed in
Annexes 2 and 3 are now invited and they should be with the
Department NO LATER THAN
in writing to: Nicola Rochester, Local Government and Firefighters’ Pension Schemes Division,
Zone 2/F8, Ashdown House,
information or clarification should be directed to Myfanwy Taylor, at the address above or at
myfanwy.taylor@communities.gsi.gov.uk.
Background
Ministers
have previously indicated their intention to come forward, at this time, with
costed options for a new-look LGPS and to seek the views of interested parties.
Their intention is then to circulate draft amending regulations later in the
year for the necessary statutory consultation exercise on specific proposals
for a new-look Local Government Pension Scheme to apply in England and Wales
from
The programme timetable for these stages is as follows: -
i Costed options
consultation
ii Statutory consultation exercise on
specific new-look LGPS proposals November 2006 to February 2007
iii Make and lay new-look Scheme
regulations April 2007
iv New-look Scheme to be in force April 2008
The programme of reform now going forward has been well-documented; it should be viewed
challengingly and positively. This is a critical time for the Scheme. There is little scope for
delay if the key dates in 2007 and 2008 are
to be achieved. Consultees
are encouraged,
therefore, to engage quickly in this exercise
given the timetable outlined above.
Policy Context and Options
The Government’s policy towards the LGPS in England and Wales is now well established. It is
to support the provision of good quality, index-linked, pensions for workers in and around local
government. However, affordability, viability, and fairness to tax payers, all remain key
ingredients of Scheme stewardship, as is the need for equality-proofing. These elements will
continue throughout the current exercise and the remaining stages of the reform programme.
Your contribution to the debate at this stage can assist directly in this important process.
This is a real opportunity to help ensure that the Scheme can go forward on an affordable and
sustainable basis; the need to balance fairness for Scheme members and taxpayers is central
to the whole LGPS modernisation and reform exercise. The role of Scheme employers and
providers is critical also because they underpin the viability of the Scheme and so ensure its
stability. Any change, let alone improvement, carries with it a future cost. The social, economic
and financial context within which the Scheme operates is changing rapidly. So too is
the nature of local government, and its workforce. The Government’s plans for state pension
and other reforms are now published and provide a backdrop to the LGPS reforms.
In preparing this exercise, the Department involved a number of key stakeholder interests who
have been regularly consulted on a wide range of options, costed by the Government Actuary’s
Department (GAD) over recent months. We are grateful for their helpful contributions which
have assisted in the narrowing down from the extensive number of original benefit package
permutations and which has led ultimately to the options now set out in the enclosed
consultation document. In parallel, a number of LGPS administering authorities have also been
developing new ways forward.
Four options are set out to on which to seek your
views, invite analysis and comments. None
are being recommended. There are no fixed proposals; there is no front runner. This is a
genuine opportunity for all Scheme interests to engage in an important stage in the introduction
of
a new-look LGPS to meet the needs of the workforce, employers and other
relevant objectives. It is hoped that
LGPS administering authorities will see the advantage, with actuarial
assistance, of costing the options, or variations, to reflect local
circumstances, including the position of a range of local employers. This should add data and depth to their
actual responses and directly assist in the final choice of a new scheme.
To accompany this informal consultation exercise, open seminars for all Scheme interests,
especially the major employers, have been
arranged to take place in
are set out at Annex A. The Department is also happy to be involved in any other arrangements
which consultees or their advisers decide to organise. Please contact Nicola Rochester using
the contact information above, or by
telephone 020 7944 6016, if you wish to take this offer up.
T B J CROSSLEY
Annex A
LOCAL GOVERNMENT PENSION SCHEME
NEW LOOK SCHEME WORKSHOPS
A series of workshops has been arranged by
DCLG to engage LGPS interested parties (employers, providers, trades unions and
members) in the objectives and scope of the proposed new-look Scheme design
process. Essentially it will be a two way exercise in participation with an
extended Q&A session.
The details are set out below
Thursday 13
July Ashdown House Victoria
Friday 21
July Ashdown House Victoria
Friday 28
July Ashdown House Victoria
If
you would like to attend one of these events, do please contact either Nicola
Rochester on 020 7944 6016 or via email nicola.rochester@communities.gsi.gov.uk,
or Diana Abelson on 020 7944 5971 or via e-mail diana.abelson@communities.gsi.gov.uk
as soon as possible indicating your preferred date. Places are limited and will be allocated on a
first come first served basis. Additional events can be arranged if
there is sufficient interest.
Enquiries
should be made to either Nicola Rochester or Diana Abelson
Addressed to:
The Chief Executive of:
County Councils
(England)
District Councils (England)
Metropolitan Borough
Councils (England)
Unitary Councils
(England)
County and County
Borough Councils in Wales
London Borough Councils
South Yorkshire Pension
Authority
Tameside Metropolitan
Borough Council
Wirral Metropolitan
Borough Council
Bradford Metropolitan
City Council
South Tyneside
Metropolitan Borough Council
Wolverhampton
Metropolitan Borough Council
London Pension Fund
Authority
Environment Agency.
Town Clerk, City of London Corporation
Clerk, South Yorkshire PTA
Clerk, West Midlands PTA
Fire and Rescue Authorities in England and Wales Local Government Association (LGA)
Police Authorities in England and Wales LGPC
Employers' Organisation SOCPO
SOLACE ALACE
CIPFA New Towns Pension Fund
ALAMA Audit Commission
UCEA Fire and Rescue Authorities
Police Authorities Association of Consulting Actuaries
Society of County Treasurers Society
of District Council Treasurers
Society of Metropolitan Treasurers Society
of London Treasurers
National Probation Service for England and Wales Society of Welsh Treasurers
Northern Ireland Public Service Alliance Society of Chief Personnel Officers
Trades Union Congress
UNISON AEP
TGWU FBU
GMB Aspect
UCATT Managerial & Professional
Officers
NAPO Fire Officers’ Association
AMICUS CYWU
Other Government Departments
GAD
DoE (NI)
SPPA