Timing critical to success of Access and Fairness consultation proposals
Local Government Pension Scheme (LGPS) authorities may face challenges in implementing the changes proposed in the LGPS Access and Fairness consultation, according to Hymans Robertson.
This is largely due to the significant workload already involved in delivering other time-intensive reforms, such as the McCloud remedy and the Pensions Dashboard.
The Access and Fairness consultation aims to address social issues and rectify inequalities and discrimination within the LGPS. However, Hymans Robertson warns that the success of these proposals will depend on whether they can be implemented within a timeframe that aligns with the scheme’s existing commitments.
A key factor is the current workload of pension administrators and their software providers, who are already focused on developing solutions for the McCloud remedy. These providers will need sufficient time to make any additional updates required by the new proposals.
Reflecting on the value of the Access and Fairness consultation, Con Hargrave, GAP Consultant at Hymans Robertson, said: “The government is taking welcome steps to address some long-standing and important issues in the LGPS.
“The proposals in the consultation should help improve member outcomes and rectify some of the inequalities and discrimination that exist in the scheme. However, some of the changes will be complex to deliver in practice and are likely to require manual, time-consuming calculations and historic investigations.
Backdated changes to survivor pensions, death grants after age 75, and cohabiting partner pensions are examples. This doesn’t mean the changes aren’t valuable, but expectations should be realistic to ensure the government’s aims can be achieved.”
On how the government can support LGPS administrators, Hargrave added: “The government has sought views on the administrative impact of the proposals, and we would encourage a staggered implementation to avoid overloading administrators.
“The proposed changes to how periods of absence are treated under the scheme will require employer payroll developments. This is an obvious candidate for delayed implementation to allow time for necessary preparations.
While it’s likely that addressing the Goodwin discrimination will be among the government’s highest priorities, the associated administrative requirements are some of the most complex.
For this, clear and detailed implementation guidance from the government will be essential to help administrators plan effectively for the changes.”
