The new-look Local Government Pension Scheme, which came into effect on 1 April, was planned as the basis of a future service cost of 19.5 per cent. of payroll, formed of 6.3 per cent. of pay from employees, and 13.2 per cent. of payroll from employers. The actual costs for local authority employers are emerging from the results of the 2007 scheme valuation exercise. The information is not yet fully available centrally.
To maintain the stability of scheme costs, and achieve a fair and equitable balance between the provision of current and future benefits, and their cost for members, employers and taxpayers, new arrangements for sharing future cost-pressures and risks will be in place by 31 March 2009 to feed into the next, 2010, valuation exercise.