Options for a new look Local Government Pension Scheme in Northern Ireland

You will have received a copy of the consultation document “Where next? – Options for a new look Local Government Pension Scheme in England & Wales produced by the Department of Communities and Local Government (DCLG) from the Department of the Environment on 2 August 2006.

The Department in its letter of 2 August 2006 confirmed that the Local Government Pension Scheme (LGPS) in Northern Ireland maintains parity with the LGPS in England & Wales. The DCLG consultation document will, therefore, form the basis of the consultation about the future of the LGPS in Northern Ireland. The Department has requested comments on the consultation document from employers by 23 October 2006. A copy of the Committee’s comments on the consultation document are attached for your information and I would appreciate a copy of your response to the Department on what is likely to prove to be the most significant changes to the LGPS since its introduction in 1950.

The consultation document has four proposed options for the new look LGPS, which have been costed by the Government Actuary’s Department (GAD) based on an average scheme. As these costings may not be appropriate for the LGPS (NI) the Committee commissioned the Fund’s Actuary, Hymans Robertson, to carry out a costing exercise of the four options for the LGPS (NI). I therefore also attach a copy of the report for your information.

Yours sincerely

D W Morrice

Secretary