December 2007
On Thursday 23 November, Phil Woolas MP, the Minister for Local Government, announced details of a new look Local Government Pension Scheme.
The scheme, which is due to come into operation from April 2008, is to be a final salary scheme based on 1/60th of final salary (or the average of the best consecutive three years salary in the last 10 years). Survivor dependent pensions will be based on a 1/160th of final salary. The normal retirement age is to be age 65 and it is proposed that the employee's contribution rate will be 5.5% on pay up to £12,000 and 7.5% on pay above £12,000. The scheme will see the introduction of co-habitees' pensions and a tiered ill health pension system, plus an increase in the death in service lump sum from 2 to 3 years pay. For more information see LGPS reform: the next steps