In February 2014, changes to the Local Government Pension Scheme 2008 introduced revised regulatory requirements for dealing with the deficits of employers exiting the Local Government Pension Scheme (LGPS).
In particular, Regulation 38 was amended to provide more detailed prescription around the valuation to be
carried out at the point of exit, commonly known as the ’cessation valuation‘ and how it could be paid.
In this briefing note, we look at what we believe administering authorities and employers would like to be able to do in dealing with outstanding employer liabilities at exit, what the regulations may allow, and what the solution may be.
We also look at Rates and Adjustments Certificates.