The pre-Budget report estimated public service pension schemes will save £1 billion a year from 2012-13, and at least twice this amount over the long-term as part of reforms across public service pension schemes. These savings will flow from cap and share reforms impacting on the four main public service pension schemes provided for teachers, local authority employees, the NHS and the Civil Service. The proportion of savings to accrue to the Local Government Pension Scheme will reflect the results of its cap and share process programmed to follow the next Scheme-wide actuarial valuation exercise due on 31 March 2010.
The next scheme actuarial valuation exercise takes place on 31 March 2010. It will assess all the relevant factors influencing the stability and solvency of the scheme, including the effect of recent stock market conditions and trends. New employer contribution rates to be determined by the valuation will apply from 1 April 2011 until 31 March 2014. Employee contributions are set separately by the relevant Local Government Pension Scheme Regulations.