Consultation on LGPS Investment in Partnerships
The Federation has responded to the Department of Communities and Local Government (DCLG) consultation on the Local Government Pension Scheme Investment in Partnerships.
Fairer treatment for housing associations in LGPS – information request
The Federation is seeking a small amount of information from those housing associations that are members of Local Government Pension Schemes.
We aware that some housing associations face treatment from their LGPSs which they often regard as unfair and can lead to severe financial implications detrimental to their business.
Therefore, we need information to assist us in our lobbying work both nationally and on an individual scheme level, particularly on the issue of housing associations' representation on LGPSs.
For information on how you can assist us please read the fairer treatment for housing associations in LGPS
National Housing Federation response to CLG’s consultation on LGPS
The Federation has responded to the Department of Communities and Local Government’s (DCLG) consultation on the Local Government Pension Scheme (LGPS): Consultation on proposed increases to employee contribution rates and changes to scheme accrual rates, which was sent on Friday 6 January 2012. The consultation ended on the same day.
Proposed changes to the Local Government Pension Scheme (LGPS)
As part of the Government’s spending review, a target has been set to reduce pension costs in the unfunded public sector by £2.8bn a year by 2014/15. As part of this, the Local Government Pension Scheme (LGPS) needs to be saving £900m a year by this date. This is proposed to be achieved in three ways - increasing employee contributions, reducing future benefit accrual and increasing the normal retirement age.
The Department of Communities and Local Government (DCLG) has set out proposals that, if implemented, will lead to changes coming into effect from April this year. Although DCLG are consulting on its proposals, a significant number of participating employers, including housing associations, are not being asked for their views. The Federation, together with KPMG, are therefore contacting DCLG in order to push the case for the social housing sector to have a greater say in these changes and the future running of the scheme.
Find out more about the proposed changes to Local Government Pension Schemes.
The Hutton Report
Implications for members of LGPs
The end of final salary schemes and members will have to work longer. However, rights earned will be preserved.
The black hole surrounding public sector pensions has been a headache for successive governments as the deficit to fund these pensions has built up. Without action this is expected to create a £10.3 billion funding shortfall by 2015/16, which would have to be filled by central government. To address this problem, the coalition government appointed Lord Hutton, the ex-Labour Pension’s minister, to set up an independent review to look at how to relieve this financial burden from the government.
On the 10th March Lord Hutton published his final report. The main points that will affect members of Local Government Pension Schemes in the sector are as follows:
- Employees on final salary schemes will be switched to career averaged earnings schemes by 2015.
- Any rights already earned will be preserved.
- The age at which a pension can be claimed will rise to 66 by 2020 and increase in line with the State Pension age after that.
The government announced in the 2011 Budget that these recommendations have been accepted