The Department for Communities and Local Government has published a consultation on proposed changes to the LGPS.
The consultation proposes a combination of phased increases in member contributions from April 2012 and a change in the accrual rate from April 2013, but:
- no increase in contribution for members earning less than £15,000;
- maximum 1.5 percentage point increase in total by 2014–15 for those earning up to £21,000 (amounting to a 0.6 percentage point increase in 2012/13); and
- high earners to pay progressively more than lower earners but no more than 6 percentage points more before tax relief (a 2.4 percentage point cap in 2012–13).
Different options are proposed, one involving a higher contribution increase and a smaller reduction in the accrual rate and another involving a lower contribution increase and a greater reduction in the accrual rate.
Consultation closes on 6 January 2012.
Click here for the consultation document.