18.05.16
Employers often unprepared for costs of joining LGPS, despite increased membership
The Local Government Pensions Scheme (LGPS) has seen a rapid growth in the number of employers such as universities, charities and housing associations joining, but many underestimate the financial costs this places on them.
According to the Pensions and Lifetime Savings Association (PLSA), the LGPS has grown rapidly in recent years to more than 10,000 organisations – with an increase of 14% in 2013-14 alone.
However, PLSA said that employers are often unprepared for the legal and financial responsibilities of joining the LGPS.
Joanne Segars, chief executive of the PLSA, said: “The Local Government Pension Scheme is the largest public sector pension scheme in the UK and provides some fantastic benefits for its members.
“But for employers participating in the LGPS there are significant legal, financial and administrative obligations which can cause a real headache. Many are beginning to question whether they can even afford to stay in the scheme.”
The PLSA is now publishing a series of guides to employers taking part in the LGPS.
Unison recently launched a petition against government changes to the LGPS, following concerns that it will require members to invest to support government infrastructure schemes, instead of their financial interests.
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