The Government has closed its consultation on changes designed to reduce the gender pension gap on the Local Government Pension Scheme (LGPS) in England and Wales.
These “access and fairness” changes have been supported by analysis from the Government’s Actuary Department, and are designed to reducing the disparity of pension paid to male and female members of this scheme.
Around 74 per cent of the scheme’s 6.7m members are women, but their average accrued pension are 40 per cent lower than for their male counterparts.
The GAD is proposing making all unpaid leave and child-related leave pensionable. There are also proposals to take a fairer approach to buying back pension to help reduce the gap.
Responding to the consultation Hymans Robertson senior actuarial consultant Greer Flanagan says: “The government are taking welcome steps to shine a light and take action on the gender pensions gap in the LGPS. The proposals to make unpaid leave, and all child related leave pensionable, coupled with a fairer approach to buying back pension will help to reduce the gap.
“Reporting of the gender pensions gap in the 2025 valuation reports is another welcome step to increase awareness of this issue. However, consideration must be given to timescales, and the level of detail requiring to be reported, given fund valuations are already well under way.”
These proposals were also supported by the Society of Pension Professionals, who said they would fundamentally improve fairness in and access to the LGPS. However, the SPP have also highlighted the potential for “disruptive administrative impacts” – given the numerous other projects being dealt with by the LGPS, from dashboards to the McCloud remedy, designed to remove age discrimination within the scheme.
The SPP adds these impacts could be mitigated with careful timing and sequencing of the necessary regulation changes.
If these proposals are adopted, and reduce the gender pensions gap, there may be pressure for similar moves to be adopted across the DC workplace sector.
Speaking about the LGPS proposals Jim McMahon, Minister of State for Local Government and English Devolution said they “fundamentally improves fairness in and access to the LGPS, addressing key issues that have been neglected for too long and treating them with the urgency they deserve.”
The consultation was issued by the Ministry of Housing, Communities & Local Government (MHCLG).
