All Change! The new-look LGPS

Despite Communities and Local Government's (CLG) promises to have regulations a year in advance, the final form administration, benefit and transitional regulations were very late in coming. This uncertainty has increased the challenges on administering and employing authorities in implementing the revamped Local Government Pensions Scheme.

Key challenges over the coming months are going to be communicating what the new scheme means in practice for members, especially in relation to the allocation of contribution bands. Authorities are also going to have to grapple with the new tiered ill-health benefits, as the first cases under the new regime start to come through.

As well as the new benefit structure, administering authorities must also comply with the additional governance requirements and publish a governance compliance statement in line with the guidance from CLG.

CLG intends to issue a consultation document on how a cost sharing mechanism could operate in the LGPS with a view to the Secretary of State issuing statutory guidance before 31 March 2009. There is also increased interest and issues arising over the participation of private contractors in the LGPS through admission agreements and CLG are consulting on this.

Be prepared for these changes and keep the LGPS on your radar!

Read Wragge & Co's analysis of the implications of admitted body status. You could also take a look at more detailed information on the new ill-health pension benefits.