Local Government Pension Scheme changes proposed

London Pension Fund Authority wants more control for charity members

One of the largest administrators in the Local Government Pension Scheme has called for wide-ranging changes that would give the scheme's charity members greater control over their repayments.

The London Pension Fund Authority, one of 99 regional administrators of the scheme, manages about £4bn of pension funds for 200 employers, more than half of them charities. Pension experts warned earlier this month that charity members of the scheme could face a rise in their payments totalling about £25m over the next year.

Last week the LPFA published a green paper proposing that the Government should transfer management of the scheme from the Communities and Local Government department to a commission of employers and taxpayer and employee representatives.

"Charities are in a tough situation because they find it difficult to afford repayments but can't afford to pay a lump sum to leave the scheme," said Mike Taylor, chief executive of the LPFA. "They have almost no control over their level of repayments, but this new system would give them and other stakeholders a much greater voice."

He said the proposals had attracted wide support from administrators, employers and employee representatives.

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