Structural Review of Scheme
Consultation on the structure of the Scottish Local Government Pension Scheme (LGPS).
A consultation into the structure of the Local Government Pension Scheme has been launched by the national Scheme Advisory Board. The Advisory Board has a statutory role in advising Scottish Ministers on the desirability of changes to the Scheme.
Four options are under active consideration:
Retain the current structure of 11 (Scottish) LGPS Funds
Promote co-operation in investing and administration between the 11 Funds
Pool investments between the 11 Funds
Merge the 11 Funds into one or more new Funds
The origins of the consultation lie in the Heads of Agreement of 2013 between COSLA and the Trade Unions when as part of the overall package leading up to scheme changes in 2015 it was agreed that there would be a structural review of the Scheme. The Cabinet Secretary with responsibility for the Local Government Pension Scheme – Derek Mackay MSP – has recently given permission for the launch of the formal consultation into the structure of the scheme.
A briefing document highlighting the key points to be considered in relation to each option can be found on the website of the Scheme Advisory Board - http://lgpsab.scot/ - together with other relevant papers.
n.b. The consultation is only open to LGPS employers and employee representative groups.
The significance of the review should not be underestimated as the outcome has the potential to radically shake up the way in which Scheme functions - including payments and investments - are undertaken.
The consultation closes in early December with a report analysing the consultation responses scheduled to be with the Advisory Board by April, 2019. The Board will then consider the findings and report to the Minister for his final decision.
The Pensions Committee and Board of Falkirk Fund will be drafting their own response in due course which will be publicised once finalised and agreed.