Local Government Pensions (Hansard, 29 October 1996)

§ Sir Paul Beresford

In July, I announced that regulations would be prepared to give effect to the proposals for change initiative for the local government pension scheme. Today, draft regulations are being circulated for consultation with local government pension interests in England and Wales. The closing date for comments is 10 January 1997.

The scheme's provisions have been radically recast to provide new, easy-to-read regulations in a more accessible and user-friendly format. These are designed to improve the ease with which local authorities interpreted the scheme's legal provisions and to provide scheme members with a clear set of scheme rules. Many out-of-date regulations have been removed. New opportunities are included for employers to provide optional benefits for scheme members on a share cost basis. In addition, a number of other key improvements and changes are proposed, including an equalisation of future employees' contribution rates.

Existing scheme members' pension entitlements will remain statutorily protected. Eligible members would be able to benefit from any proposed changes to the scheme's provisions.

Further consultations will begin shortly covering new provisions for the investment management of local authority pension funds, revised regulations for dispute resolution within the LGPS and measures to ensure a smooth transition from the existing to the new scheme.

Several regional seminars have been arranged to explain and discuss the proposals with local government and other interested parties as an integral part of the statutory consultation exercise. I know that all LGPS interests will wish to participate fully and ensure that the new scheme regulations will provide a long-term, secure, statutory basis for the LGPS.

Subject to the outcome of these consultations, it is intended to make and lay the new scheme regulations early in 1997, with them coming into effect on 1 April 1998.

67W