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Local Government Pension Scheme

Volume 449: debated on Monday 17 July 2006

To ask the Secretary of State for Communities and Local Government what estimate the Government have made of the total cost of the Local Government Pension Scheme to local authorities (a) including and (b) excluding employee contributions in (i) 2005-06, (ii) 2006-07 and (iii) 2007-08. (85656)

Based on the findings of the 2004 actuarial valuation exercise it is estimated that the average cost to local authority employers will be (i) 12.5-13.5 per cent. of pensionable pay in 2005-06; (ii) 14-15 per cent. in 2006-07; (iii) 16-17 per cent. in 2007-08. On average employees will contribute 5.8 per cent. of pensionable payroll as well in each of these years.