Government strengthens pension protections for…

Analysis and expertise from the Government Actuary’s Department (GAD) supports a consultation on the Local Government Pension Scheme (LGPS) (England and Wales) improvements covering access and protections.

“Local Government Pension Scheme in England and Wales: Scheme improvements (access and protections)” has been issued for consultation by the Ministry of Housing, Communities & Local Government (MHCLG). The consultation runs until 22 December 2025 and is open to everyone, though particularly relevant to LGPS members, employers and administering authorities.

The consultation follows reforms earlier this year focusing on access and fairness, which addressed key issues including the gender pension gap and survivor benefits.

GAD analysis

GAD supported the MHCLG pensions policy team with comprehensive analysis across the consultation’s 4 key policy areas:

• Implementing new Fair Deal protections for outsourced workers
• Extending LGPS access to mayors and councillors in England
• Simplifying academy applications for pension fund directions
• Normal minimum pension age changes following the Finance Act 2022

GAD’s analysis included cost impact assessments of proposed changes and illustrations of how these could benefit individual scheme members. The department provided actuarial expertise on the estimated £40m to £45m annual increase in employer contributions from extending access to elected representatives.

Will King, senior policy lead at MHCLG, said: “These are important proposals for the LGPS and developing them required co-ordinating a multi-disciplinary team within government. GAD has been a key partner, providing crucial analysis and insights throughout the process.

Strengthening protections

The LGPS serves over 6.7 million members with around £400 billion of assets. Much of the consultation focuses on ensuring fair access and strengthening protections for those who serve our communities through public service.

A key proposal introduces new Fair Deal protections, aligning local government with central government practice, by ensuring outsourced workers maintain seamless access to the LGPS rather than being offered alternative schemes. GAD will work with MHCLG and stakeholders to develop detailed guidance supporting these enhanced protections.

The consultation also proposes extending pension access to mayors and councillors in England, bringing them into line with Scotland, Wales and Northern Ireland where elected members already participate in their respective LGPS arrangements.