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LOCAL GOVERNMENT PENSION SCHEME
The new Local Government Pension Scheme (LGPS) comes into effect on 1 April 2009, and the current scheme will be closed. If you are a member of the LGPS on 31 March 2009, and continue to have a contract of employment on 1 April 2009, you will be automatically transferred to the new scheme.
The benefits members have built up to 31 March 2009 do not change – only benefits you build up after 1 April 2009 will be affected by the new scheme.
From 1 April 2009, members’ contributions will be based on their rate of pay. The current flat rate of 6% (5% for some) will be replaced by new rates.
The main features of the new scheme are as follows:-
- The LGPS remains a final salary scheme
- Accrual rate increases to the better rate of 1/60th of pay per year (previously 1/80th)
- Ability to exchange some of your pension for a tax free lump sum
- Tiered employee contribution rates introduced
- Introduction of partner’s pensions
- Increased death benefits
- Increased flexible retirement options
- Better targeted ill health benefits
If you have any queries on how the new scheme regulations will affect you, please contact your Pension Administrator to discuss. Contact details can be accessed on the following link. LGPS Contacts
Visit the Local Government Scheme Reform page in the Pension Reforms & Taxation area for updates and for information on simplifying the taxation of Pensions visit our page on Taxation.
CONSULTATION ON PROPOSED CHANGES TO THE LOCAL GOVERNMENT (DISCRETIONARY PAYMENTS AND INJURY BENEFITS) (SCOTLAND) REGULATIONS 1998
Consultation period 10 September to 31 October 2008.
Draft regulations have been issued for consultation which will make provision in the above-named Regulations, from 1 April 2009, for a third tier ill-health lump sum compensation payment, payable at the discretion of the employer in circumstances where a scheme member has ceased to be employed on capability grounds but is not deemed to be permanently incapable of carrying out efficiently the duties of that employment.The amending regulations will also increase the maximum lump sum compensation payment which may be awarded in cases of redundancy or efficiency from 66 weeks to 104 weeks’ pay.
Consultation Letter (pdf 34kb)
Word version of Respondent Information Form
CONSULTATION ON PROPOSALS
The new Local Government Pension Scheme in Scotland (27/06/08)
Regulations which set out the new Local Government Pensin Scheme (LGPS) in Scotland were laid in the Scottish Parliament on 6th June 2008 and come into force on 1 April 2009. SPN/LG Circulars Nos. 2 and 3 provide further information and can be accessed on the Local Government Scheme Circulars area of this website.
The Local Government Pension Scheme in Scotland (14/02/2008)
The Scottish Government today issued a Press Release to announce the agreement reached by SLOGPAG. A copy of the Press Release and Heads of Agreement document, signed by all parties involved in discussions, can be accessed by following the links below.
Press Release (PDF 51kb) Heads of Agreement document (PDF 574kb)
Also available from today is a Report and Summary of responses received during the consultation exercise held between 30 July 2007 and 31 October 2007 on the proposals for the new LGPS. These can be accessed by following the links below.
Report (PDF 85kb) Annex A - Summary of Responses (PDF 234kb)
Consultation is now underway on the draft regulations and the consultation documents can be accessed on the LGPS Consultation Page
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Proposals for the New Local Government Pension Scheme: Proposals have been outlined for the new Local Government Pension Scheme (LGPS) in Scotland. These proposals have been jointly developed over the last 6 months by a tripartite group comprising of representatives from the Scottish Executive, COSLA and Trades Unions. These proposals have been developed to meet the varied needs of a diverse workforce, balanced with the requirements of employers.
The consultation process is now underway and views and comments are welcomed from all those with an interest in the scheme. Responses received will inform final decisions on the key features of the new Local Government Pension Scheme for Scotland. The consultation process will close on 31st October 2007.
For further information and to access the consultation documents, please follow this link to take you to the LGPS Pension Reforms area of our website.
Pensions for Councillors: Regulations allowing access to LGPS for councillors were signed by the Minister for Finance and Public Service Reforms on 12 February 2007. They were laid in the Scottish Parliament on 15 February and will come into force on 2 May 2007 [SSI2007/71]
Visit Scotland: Regulations have been amended to incorporate VisitScotland into the Schedule of scheme employers, allowing staff transferred from the NTB retain access to the LGPS [SSI2007/71]
The Local Government (Discretionary Payments and Injury Benefits) (Scotland) Regulations 1998: The regulations were amended to remove the formula that currently determines, upon the basis of age and service, the level of discretionary lump sum compensation that can be provided in the case of early retirement on grounds of efficiency or redundancy. There is no change in the maximum limit that can be awarded, which remains at 66 weeks pay. Circumstances under which payments may be made and the level of such payments will be a matter of policy on the part of the employer. Some age and service related pre-conditions for the payment of compensation were also removed. [SSI 2006/609]
The Local Government Pension Scheme (Scotland) Regulations 1998: The regulations were amended to remove the Rule of 85 from the Scheme from 1st December 2006 in order to comply with the terms of the EC Directive (2000/78/EC) on equality in the workplace. The regulations provide transitional protection to existing scheme members who will be 60 and who satisfy the 85 year rule by 31 March 2020; other existing members will not be subject to actuarial reduction in relation to any service before 1st April 2008. [SSI 2006/514]
Scottish Police Services Authority: The Local Government Regulations were amended late in 2006 to insert the Scottish Police Services Authority into the Schedule of Scheme employers [SSI 2006/514].
The Local Government Pension Scheme (Scotland) Regulations 1998: The regulations were amended tointroduce significant flexibilities into the scheme's legal framework to reflect the simplified tax regime provided by the Finance Act 2004. [SSI 2006/468]
Report by Hymans Robertson - December 2005 (pdf 236 Kb) - Proposals for the future of the Local Government Pension Scheme in Scotland. The SPPA have received a report which had been commissioned from Hymans Robertson to prepare a report to help with ongoing discussion relating to the future benefit structure of the LGPS in Scotland.
Community Justice Authorities: The Community Justice Authorities are in the process of applying for admission to LG pension funds
Management & Investment of Funds: Certain minor changes to the Regulations have been postponed for the moment.