Last reviewed 8 September 2020

In May 2019, the Ministry of Housing, Communities and Local Government (MHCLG) launched a consultation seeking views on policy proposals to amend the rules of the local government pension scheme in England and Wales.

The consultation sought views on proposals to give administering authorities the powers to amend employer contributions:

  • during the inter-valuation period following a covenant review, perhaps in relation to some categories of employer only

  • at the request of the employer.

On 27 February 2020, the Government published its response to the proposals for further changes to the rules on exit credits.

It has now made available, at GOV.UK, its response to the 279 comments it received with regard to the proposals on employer contributions and flexibility on exit payments.

The response document highlights that, since the consultation, administering authorities and employers in the scheme have faced new potential risks as a result of the global pandemic.

The employers and administering authorities have accordingly made representations seeking early implementation of these proposals in order to assist management and mitigation of these risks.

Responding to this request, the Government has said that it will make regulations at the earliest opportunity. It is the intention to develop guidance on the use of the new powers working with the Scheme Advisory Board and CIPFA (the Chartered Institute of Public Finance and Accountancy).

The MHCLG has confirmed that a further response will be made in relation to the other proposals in the consultation in due course.