The London Pensions Fund Authority (LPFA) has published proposals for the reform of the Local Government Pension Scheme (LPGS).
The proposals are intended to stimulate debate around the reformed LGPS, which is to be implemented from 2015.
These cover scheme design, cost mechanism, structure, and practical ideas on implementation.
The key proposals include:
- Accepting the switch from a final salary to career average scheme
- A change in accrual rates from 60ths to 70ths
- The introduction of a new low-start scheme to help low-paid and younger employees
- The setting of contribution cost ceilings for employers
- Centrally led and resourced communication and training programmes and project management to support individual funds
- Financial incentives for funds to implement shared administration models
Mike Taylor, chief executive of the LPFA, said: “The time is now right to start thinking about implementation of a new scheme.
“There is a lot to get done if we are to ensure a fair, affordable and, most importantly, fully understood LGPS is in place by 2015.
“The green paper is not intended as a single blueprint for success, rather it attempts to stimulate debate concerning the key ingredients of a new LGPS and the practicalities necessary for its successful implementation.”
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