<p>In 2014 and 2015, significant reforms were made to public service pension schemes to address increases in the costs of providing pension benefits to public workers, and to place schemes on a more sustainable and affordable long-term footing. In the Local Government Pension Scheme (LGPS), reforms were implemented from 1<sup>st</sup> April 2014 and included moving the scheme from a final salary benefit structure to a career average benefit structure.</p><p>In May 2012, the Government published documents (attached)on the planned reforms to the LGPS including a costings analysis from the Government Actuaryâs Department (<a href="https://gbr01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fdata.parliament.uk%2FDepositedPapers%2FFiles%2FDEP2012-1614%2FBuildupofcostsandcostreconciliationtables-Final.pdf&data=02%7C01%7CParliamentary%40communities.gov.uk%7C343c734613f8446c58ad08d79900fe76%7Cbf3468109c7d43dea87224a2ef3995a8%7C0%7C0%7C637146101848833650&sdata=A0KEKqUFsdBcbD5Z%2FyRpkxTguzI%2BPizTnFkkwkwY%2BME%3D&reserved=0" target="_blank">http://data.parliament.uk/DepositedPapers/Files/DEP2012-1614/Buildupofcostsandcostreconciliationtables-Final.pdf</a>). This analysis outlined that the existing final salary scheme design was estimated to cost in total 21.73% of pay (p2) and the planned career average scheme was estimated to cost in total 19.51% of pay (p3), suggesting an overall saving of just over 2.2% of pay.</p><p>To ensure consistency with other public service pension schemes, the final design of the reformed LGPS was changed so that scheme members received revaluation of their in-year accrued pension immediately. This increased the costs of the career average scheme by an estimated 0.4% (see table 7.1 at (attached) <em><a href="https://gbr01.safelinks.protection.outlook.com/?url=http%3A%2F%2Flgpslibrary.org%2Fassets%2Fothergov%2F2013VRep.pdf&data=02%7C01%7CParliamentary%40communities.gov.uk%7Cb271725facff4362cd7508d79e864918%7Cbf3468109c7d43dea87224a2ef3995a8%7C0%7C0%7C637152171889860649&sdata=oIP%2BEEtOPIrGwEunNoO%2By7WozXwAUvgCSKjbwBJMzds%3D&reserved=0" target="_blank">http://lgpslibrary.org/assets/othergov/2013VRep.pdf</a> </em></p><p>The Government is currently considering the changes to public service pension schemes which will be necessary to comply with the findings of the Courts in the McCloud and Sargeant cases (<a href="https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.parliament.uk%2Fbusiness%2Fpublications%2Fwritten-questions-answers-statements%2Fwritten-statement%2FCommons%2F2019-07-15%2FHCWS1725%2F&data=02%7C01%7CParliamentary%40communities.gov.uk%7C343c734613f8446c58ad08d79900fe76%7Cbf3468109c7d43dea87224a2ef3995a8%7C0%7C0%7C637146101848843609&sdata=W9B05xlK7MxGu2K5LH3QmO4rU7x%2F5rDqrbzDRT%2F892k%3D&reserved=0" target="_blank">https://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2019-07-15/HCWS1725/</a>) and these will have cost implications for the reformed scheme.</p>