We are largely supportive of most of what is being proposed in the consultation, but will still have a lot to say; the devil is in the detail and, as ever, we also need to think through any unintended consequences.
Pensions are supposed to be boring – public sector pensions even more so. Actuaries are only supposed to get excited very occasionally and when they do, it’s often hard to tell that they are excited.
One of Lord Hutton’s key recommendations was that retaining defined benefit schemes in the public sector should come with the condition that there is a “cost cap” mechanism. This seemed like a good idea at the time but like many things in life is easier to say than actually do.
The Spending Review 2015 announced Government’s plans to continue to modernise terms and conditions of workers in the public sector to ensure fairness and sustainability in a challenging economic climate.
We advise over 600 pension schemes including 23 Local Government Pension Scheme Funds (“LGPS Funds”) which is around 25% of all LGPS Funds. We also advise a number of organisations that participate in the LGPS or other public service schemes.