Changes to Local Government Pension Scheme

With the threat of strikes by workers over proposed changes to their pension scheme, Welwyn Hatfield Council has applauded Government plans to tackle rising costs and secure the future affordability of the Local Government Pension Scheme (LGPS).

Following a review of the LGPS by the Office of the Deputy Prime Minister (ODPM), a package of changes to the Scheme has been set out. These will come into effect during 2006, and include a change which means whilst employees will still be able to retire from the age of 60, the pension an employee accrues after September 2006 will be paid at a reduced rate if voluntarily drawn before the age of 65.

The pension that employees have already earned in the scheme up to September is fully protected from the change. There may also be extra protection for older members of the scheme.

Click here for the full story.