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Local Government: Pensions

Volume 506: debated on Tuesday 2 March 2010

To ask the Secretary of State for Communities and Local Government with reference to the speech made by the Minister for Local Government on 27 January 2010, how much and what proportion of the £1 billion a year savings to public service pension schemes from 2012-13 will accrue as a result of changes to the scope of the Local Government Pension Scheme. (319119)

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.

To ask the Secretary of State for Communities and Local Government what assessment has been made of the effect of stock market movements between March 2007 and March 2010 on the employee contributions towards the Local Government Pension Scheme to be required from local authorities from March 2011. (319304)

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.