LGPS consultation aims to update survivor benefits and narrow gender gap
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A consultation about the Local Government Pension Scheme in England and Wales proposes to equalise all survivor benefits and reduce the gender pensions gap, as well as addressing opt-outs, forfeiture and the McCloud remedy. Responses will be accepted until 11:59pm on 7 August 2025.
The consultation, published last week by the Ministry of Housing, Communities and Local Government, contains 52 questions. It proposes to implement the 2020 Goodwin judgment on survivor benefits, and to make all maternity, shared parental and adoption leave automatically pensionable, among others, noting that three-quarters of LGPS members are women.
Deputy prime minister Angela Rayner called the changes "a critical step in ending years of discrimination, backing our dedicated public servants and helping to Make Work Pay".
The reforms will make sure local government employees are "properly rewarded and able to enjoy their hard-earned retirement”, said minister for local government, Jim McMahon.
Deputy prime minister Angela Rayner called the changes "a critical step in ending years of discrimination, backing our dedicated public servants and helping to Make Work Pay".
The reforms will make sure local government employees are "properly rewarded and able to enjoy their hard-earned retirement”, said minister for local government, Jim McMahon.
Pensions minister Torsten Bell added: “Our reforms to the Local Government Pension Scheme are bringing fairness and equality to workers, while boosting the potential of schemes to drive opportunity and growth in local communities.”
The consultation was welcomed by Melanie Durrant, a partner at consultancy Barnett Waddingham, but she noted that the changes will put a burden on administrators already stretched through the McCloud remedy, pensions dashboards connection by October, and data needed for the 2025 valuation.
“The proposals addressing the gender pensions gap are a step in the right direction," she said, with government taking on board proposals put forward by the Scheme Advisory Board. "We are also pleased to see that [gender pensions gap] reporting will be required in valuation reports, ensuring consistency across the scheme."
The consultation was welcomed by Melanie Durrant, a partner at consultancy Barnett Waddingham, but she noted that the changes will put a burden on administrators already stretched through the McCloud remedy, pensions dashboards connection by October, and data needed for the 2025 valuation.
“The proposals addressing the gender pensions gap are a step in the right direction," she said, with government taking on board proposals put forward by the Scheme Advisory Board. "We are also pleased to see that [gender pensions gap] reporting will be required in valuation reports, ensuring consistency across the scheme."
Pointing to the delay of the adequacy part of the government's wider Pensions Review, she said "it is interesting, and very positive, that the consultation proposes to gather more and better data on opt-outs from the LGPS".
However, she added: “We are disappointed that the New Fair Deal proposals have been delayed, as ongoing issues with delays in signing admissions agreements continue to create challenges for administering authorities and can negatively affect members. We hope that when they do finally arrive, the NFW proposals represent robust and practical reforms and are accompanied by regulations which will genuinely deliver simplification for administering authorities and protect workers."
However, she added: “We are disappointed that the New Fair Deal proposals have been delayed, as ongoing issues with delays in signing admissions agreements continue to create challenges for administering authorities and can negatively affect members. We hope that when they do finally arrive, the NFW proposals represent robust and practical reforms and are accompanied by regulations which will genuinely deliver simplification for administering authorities and protect workers."
