Consultation on rectification of the Cost Cap Floor Breach in the Local Government Pension Scheme

Consultation opened on 17 December 2018. Closing date 15 February 2019 at 23:00.

Summary

This consultation seeks your comments on the recommendation agreed by the Local Government Pension Scheme Advisory Board to rectify the current cost cap floor breach by improving the rate at which retirement benefits build up for both members’ and survivors’ pensions.

Documents

Consultation description

This consultation covers proposals to address the cost cap floor breach of 3.2% identified in the valuation results for the Local Government Pension Scheme (Northern Ireland) (LGPS (NI)) as at 31 March 2016.

A recent scheme valuation by the Government Actuary’s Department (GAD) shows that the costs of the LGPS (NI) are 3.2% below the employer cost cap which is set at 17% of pensionable earnings of the Scheme of pensionable earnings of the Scheme. This breaches the permissible variation of +/- 2% thus triggering a statutory procedure to ensure that scheme costs are brought back to the target measure of 17% of pensionable pay.

The statutory procedure is that the Department consults with the Local Government Pension Scheme Advisory Board with a view to reaching a recommendation to rectify the cost cap breach, endorsed by all members of that Board.

This consultation seeks your comments on that recommendation which is to improve the rate at which retirement benefits build up for both members’ and survivors’ pensions.

Ways to respond

Email -
LGPDConsultations@communities-ni.gov.uk
Write to -
Department for Communities
Local Government and Housing Regulation Division
Level 4, Causeway Exchange
1-7 Bedford Street
Town Parks
Belfast, BT2 7EG

Share this consultation

Back to top