The Local Government Pension Scheme (LGPS) is being substantially amended this year to create the 'new-look' LGPS from 1 April 2008 in England and Wales. One set of regulations, the LGPS (Benefits, Membership and Contributions) Regs 2007 (SI 2007/1166), laid last year, will bring in a new set of benefit and contributions structures from 1 April. (These have been much criticised, as the seven contribution bands prescribed will be complicated to administer and may be unpopular with members. It seems this will not be changed, however.)

Meanwhile, there are more coming. On 14 February 2008, exactly a year after the first draft was published for consultation, the Government finally laid:

The Local Government Pension Scheme (Transitional Provisions) Regs (SI 2008/238; also available as a Word document) and

The Local Government Pension Scheme (Administration) Regs (SI 2008/239; or in Word).

These had been delayed to allow a second period of consultation and the final Regs reflect some of the issues raised. They will come into force on 1 April 2008 to tally with the Benefits Regs (SI 2007/1166), except for Reg 8 of the Transitional Regs which comes into effect on 8 March to allow the Employers time to give notice of the member's contribution rate before 1 April 2008).

Still to be laid are The LGPS (Amendment)(No 4) Regs, which, amongst other matters, will amend the Benefits, Membership and Contributions Regs. A consultation on an August 2007 draft closed on 15 November 2007. Further regulations expected, which may also come into force on 1 April 2008, include amendments to the LGPS (Management and Investment of Funds) Regs 1998 (SI 1998/1831).

It was widely hoped that the start of the New-Look Scheme would be delayed another year to ease, its introduction, especially as some vital Regs are still outstanding, but the Government is pressing on with the 1 April 2008 start (unlike the Scottish LGPS which is starting its New-Look Scheme on 1 April 2009).

Footnote

The LGPS is now a registered public service scheme under Chapter 2 of Part 4 of the Finance Act 2004. It has achieved automatic registration by virtue of Part 1 of Schedule 36 of that Act (because the LGPS was, immediately before 6 April 2006, both a retirement benefits scheme approved under Chapter I of Part XIV of the Income and Corporation Taxes Act 1988 and a relevant statutory scheme under section 611A of that Act).