Dear Minister,

Local Government Pension Scheme (LGPS)

As you will be aware, the review of the LGPS commenced in August 2001. Following lengthy consultations it was decided that a new look LGPS should be introduced from April 2008. Assurances were given that administering authorities, employers and pensions administration software suppliers would be given at least a 12 month lead in period to prepare for the new Scheme. Due to a lack of real progress I wrote to CLG on 8 November 2007 to put the concerns of the LGPC on record. A copy of my letter and the reply I received is attached.

Despite the assurances given, the LGPS (Administration) Regulations 2008, which had been promised for May 2007, and the LGPS (Transitional Provisions) Regulations 2008 were not issued until 21 February 2008 (just over 5 weeks before the new Scheme came into being) and, whilst the LGPS (Benefits, Membership and Contributions) Regulations 2007 were issued on 4 April 2007, fundamental amendments to those regulations have only just been received (more than 2 weeks after the Scheme came into being). Furthermore, whilst the GAD guidance on trivial commutation and on Additional Regular Contributions (ARCs) was issued on 25 February 2008, all other GAD guidance relating to the new scheme (which had been promised by no later than the end of 2007) is still awaited and the promised Secretary of State statutory guidance on ill health retirements and on governance has not yet materialised. Amendments to the LGPS regulations 1997 are also still awaited.

I am writing because the Committee which I chair expressed extreme disappointment at its meeting on 10 April at this very sad catalogue of promises made and not kept and instructed me to bring to your attention the fact that the late issue of regulations, uncertainties surrounding what the final regulations will say, and the lack of GAD and Secretary of State guidance has caused great difficulties for administering authorities, employers, pensions administration software suppliers, the LGPC Secretariat and, indeed, for some scheme members (particularly those recently retired on the grounds of permanent ill health where the employer and the administering authority had not been able to confirm what benefit the scheme member was entitled to).

Yours sincerely

Trevor Jones, Chairman of the Local Government Pensions Committee