1 / 8

New Scottish LGPS Consultation Paper

New Scottish LGPS Consultation Paper . The story so far. Consultation Paper released July 2007 Developed by Scottish Local Government Pensions Advisory Group (SLOGPAG) Scottish Government COSLA Trades Union Closing date 31 st October 2007. Key issues – broad agreement.

iago
Download Presentation

New Scottish LGPS Consultation Paper

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. New Scottish LGPS Consultation Paper

  2. The story so far Consultation Paper released July 2007 Developed by Scottish Local Government Pensions Advisory Group (SLOGPAG) Scottish Government COSLA Trades Union Closing date 31st October 2007

  3. Key issues – broad agreement • Subject to final cost package • Case for reform • Final salary scheme • Accrual rate – 60ths instead of 80ths plus 3/80ths lump sum • Death in service grant increased to 3 years • Partners pensions including cohabitees • Flexible retirement • Equality impact

  4. Key issues – Ill health • Current provision – permanent incapacity in job or comparable • New provisions – broad agreement • No reasonable prospect of gainful employment by 65 • Unlikely do gainful employment in reasonable period (3-5yrs) • TU side 3rd tier – gainful employment shorter period. Payment equal to accrued pension until secure employment. • Pension protection extended to ill health.

  5. Key issues - Contributions • Working assumption - average 6.3% • Tiered contribution rates like tax mechanism (E&W banded) • Preferred number of tiers to be agreed. • Illustrative examples in consultation – 3, 5, 7 tiers • Employer contributions meet the balance

  6. Key issues – cost sharing & governance • Employers want 2:1 ratio, employer to employee contributions • e.g. total cost 18.9% payroll – employee pay 6.3% • Excludes investment risk and past deficits • Probably reasonable as approximate guide • Mechanism for review – trigger if costs shift significantly • Governance proposals • Cost sharing means members entitled to a greater say • Options from 50% trustees to improved consultation

  7. Key Issues – Transition arrangements • Benefits better in new scheme. • Options for transition • Simplest - all service is transferred and new benefits apply • Year for year would incur significant cost • Transfer value would reduce years of pensionable service • Alternative – two calculations, pre and post 2009 • Neither impact on ability commute into lump sum

  8. Next Steps

More Related