Professional Pensions

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LGPS delays raise implementation costs

Delays in issuing regulations for the new-look Local Government Pension Scheme has increased implementation costs considerably, AquilaHeywood says.

The administration software provider – which supplies the majority of local government schemes – said although the firm had managed to produce its software in time for the April 1 launch of the new-look LGPS, the delay in regulations had made things difficult.

AquilaHeywood senior consultant Chris Connelly explained: "Because of the lateness of the final regulations we had to develop several different versions of the software, working from the drafts that we received.

"It is not the cheapest way of doing things, developing several different versions and only using one at the end of it."

Yet, despite these difficulties, the company said it had managed to produce a successful version of the software on time.

Connelly said: "We always knew broadly what the legislation was going to be as we received a draft of it over a year ago. The intentions of the scheme have always been well publicised."

AquilaHeywood began developing its software using draft versions of the regulations – altering it as more information became available.

Connelly commented: "It was either develop several versions of the software or have it released late.

"We knew what the options were and you can quite often get a feel for the ones that are likely to go ahead."

Despite this, Connelly explained that AquilaHeywood would have to issue a further software release to cover some items of regulation that had still not been released.

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