Pensions LGPS funding deficit and future arrangements

NALC  has issued a Financial Topic Note F12-14
 
If your council has any workers enrolled in the Local Government Pension Scheme please read this briefing. It is common knowledge that there is a funding deficit in the LGPS. NALC will when the opportunity arises take it up with the relevant government departments and officials.

At present LGPS Actuaries are tackling the deficits in two ways:

• progressive increases in employers funding percentages or
• retaining constant employers percentages but adding a lump sum specifically targeted at reducing the deficit

The briefing goes on to explain - Current Reporting and Accounting Requirements, the possible effect of the introduction of Compulsory Workplace Pensions and the need to keep the situation under close and constant review.