Local Government: Pensions

House of Lords written question – answered on 16th December 2014.

Alert me about debates like this

Photo of Lord Mendelsohn Lord Mendelsohn Labour

To ask Her Majesty’s Government what is their estimate of the current level of the Local Government Pension Scheme deficit.

Photo of Lord Ahmad of Wimbledon Lord Ahmad of Wimbledon Parliamentary Under-Secretary (Department for Communities and Local Government)

The Scheme conducts an actuarial valuation every three years. The 2013 valuation estimated that the Local Government Pension Scheme in England and Wales had a funding level of 79% and a deficit of £47 billion.

The shadow Scheme Advisory Board has also brought together the funds’ triennial valuation reports to provide a view of the Scheme’s overall position (http://www.lgpsboard.org/index.php/schemedata/scheme-valuation). The Government has asked the shadow Board to identify and assess alternative ways to address the deficit and looks forward to receiving their proposals.

In addition, the Government introduced a reformed Local Government Pension Scheme from 1 April 2014, which will help the funds to reduce this deficit and ensure the scheme remains affordable in the long term and fair to both scheme members and taxpayers. Furthermore, the Government’s consultation Opportunities for collaboration, cost savings and efficiencies set out how the funds could reduce their investment costs by a further £660 million each year by working together and investing more efficiently.

The consultation is available at: https://www.gov.uk/government/consultations/local-government-pension-scheme-opportunities-for-collaboration-cost-savings-and-efficiencies

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.