Yesterday the Government laid Regulations before
Parliament which will revoke most of the recent
changes in the Scheme rules, which took effect on
1 April 2005.

Apart from some minor amendments which will stay in place, this effectively puts us back in the same position as we were in before April 2005.

In brief, these changes had meant:

Minimum retirement age (other than ill health) increased from 50 to 55, except for those already 50.

Members who joined on or after 1 April 2005 facing reductions in benefits if they chose to retire before 65.

Largely scrapping the 85 test, meaning reductions in benefits for many members who had previously not faced any.

We carried full details of these in the last Pension Power. But these and other associated changes are to
be revoked in August and backdated to April 2005.

Past issues of Pension Power newsletters

Looking forward
The impact of the April changes had been significant, with the aim of stabilising employer contributions.

So although the changes are being revoked, there will be further talks between the Government, Unions, and employers, to discuss future changes to the LGPS. What form these changes will take remains to be seen.

These talks should be completed this Autumn, with the resulting changes in the Regulations following in April 2006.

So keep an eye on this website, and watch out for a Pension Power hitting your doormat to find out more.

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