Local councillors in England now have access to the Local Government Pension Scheme (LGPS) following the introduction of new regulations.
The Government Actuary’s Department (GAD) used actuarial analysis to support a consultation about the change.
The development means scheme membership has been extended to councillors, mayors, deputy mayors and London Assembly members in England for the first time.
GAD’s partnership with MHCLG
GAD supported the Ministry of Housing, Communities and Local Government (MHCLG) pensions team throughout the development of this policy. We provided actuarial analysis, including modelling the likely additional annual cost in extending scheme access.
The change aligns England with Scotland, Wales and Northern Ireland, where elected members have continued to have access to the LGPS.
The new rules took effect on the first Monday following the May local elections. It means that service from that date onwards will be pensionable in the scheme. Membership is on an opt-in basis, placing particular importance on clear communication to elected members about their options.
With the regulations now enacted, that analytical work has contributed to a tangible change in public service pension provision.
How GAD can help
GAD regularly supports pension policy decisions, especially where clients are considering changes to
- benefit design
- scheme eligibility
- the financial implications of extending membership to new groups
Will King, Co-Head of Pensions at MHCLG said “This change in eligibility reflects the government’s position that elected leaders in England are dedicated public servants. Analysis from GAD helped underpin the change, with clear evidence on the costs.”
GAD actuary Garth Foster, who led on the work added “GAD’s actuarial expertise can help government departments, trustees, employers, and other stakeholders working through policy options.
“We help policy teams determine evidence-based decisions by giving them a deeper understanding of cost and risk implications.”
If you have plans, proposals or challenges in this space, we would welcome the opportunity to discuss how GAD might support you. Contact us at [email protected].