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Local Government Pension Scheme

Volume 454: debated on Tuesday 5 December 2006

To ask the Secretary of State for Communities and Local Government what the (a) current and (b) proposed levels are of (i) employee’s and (ii) employer’s contribution to the Local Government Pension Scheme; what benefits will be payable to (A) scheme members and (B) their civil or unmarried partners; what support will be provided for ill-health retirement; what retirement age will apply; and whether (1) benefits already paid for will continue at the current level for current scheme members and (2) they will be recalculated in an amended scheme. (105852)

[holding answer 28 November 2006]: The current contribution rate for employees in the Local Government Pension Scheme is 6 per cent. of pensionable pay, with certain members retaining rights to contribute 5 per cent.

There is no single employer contribution rate for the scheme. At the actuarial valuations for each of the 89 pension funds in England and Wales individual employer contribution rates are set for each of the employers within those funds. The average employer contribution rate in 2005-06 was some 15.2 per cent. of pensionable pay and this covers both future service accrual and meeting past service liabilities.

Draft new scheme proposals are subject to consultation. No decisions have been taken.