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For members of the Local Government Pension Scheme in England and Wales

What does it mean for the LGPS?

This news article was published on 24 Jan 2022

When the LGPS changed from a final salary to a career average pension scheme in 2014, members who were within ten years of their Normal Pension Age on 1 April 2012 were given protection from the changes. The Normal Pension Age in 2012 was generally 65. In simple terms, when a protected member takes their pension, the benefits payable under the career average and final salary schemes are compared. The higher amount is paid. This protection is called the underpin.

To remove the discrimination, the Government will need to provide younger members with protection equal to the underpin protection already given to older members. It consulted on the proposed changes to the LGPS to do this in 2020. In May 2021, the Government issued a statement confirming the key changes it will make to the LGPS to remove the discrimination. We expect a full response to the 2020 consultation in 2022.

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