Local Government Pension Scheme (Northern Ireland) - consultation on rectification of the Cost Cap Floor BreachThis 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.