Talking head: LPFA's Mike Allen explains how LGPS reforms are being put in place at the scheme.
The final stretch of this marathon is finally upon us. However there are still some milestones to be passed before we get to the starting date of April 1 2014.
If experience of the launch of the 2008 scheme is anything to go by, we know it will take some time to successfully implement the new scheme
We have just received confirmation that the employee contribution rates have been agreed without amendment, which is great news. Although as I write we are still waiting for the final version of the transition guidelines, which are an essential part in running the scheme.
We are also waiting for the final payroll and human resources guidelines to ensure these essential departments have all they need to implement the scheme.
In the meantime we have been busy meeting employees within the fund to ensure they are fully aware of the changes coming their way. These talks have been supplemented by awareness posters, informing members of the choices available, such as the 50/50 option and the opportunity to retire at age 55.
The range of material, available through the Local Government Association and on its website, includes videos and presentations. We will also be writing to all active members in the next month with full details of the new scheme.
The London Pensions Fund Authority also has been communicating LGPS 2014 changes to employers for quite some time, using our regular monthly newsletters to advise employers as soon as changes are announced. An update was also provided to more than 100 employers who attended our employers’ forum back in November at City Hall in London, and a similar presentation to employers in the Hertfordshire fund, held recently in Stevenage, was equally well attended.
In the background, all funds’ systems departments will be busy ensuring the final changes are implemented and tested to ensure a successful launch.
If experience of the launch of the 2008 scheme is anything to go by, we know it will take some time to successfully implement the new scheme, but the changes will hopefully lead to more employees joining the scheme with greater flexibility, which would enable us all to deliver sustainable public sector pensions for generations to come.
Mike Allen is director of pensions at the LPFA
