UK - The future direction of the Local Government Pensions Scheme is set to be revealed when government ministers respond to the DTLR's internal stocktake review in the next few weeks.
Many local government pension managers have argued the final salary promise should be kept following speculation that the review will reflect the DTLR’s willingness to move to a cheaper average earnings scheme for new employees.
But managers said any move away from DB would increase difficulties in employing staff and lead to demands for higher pay.
West Midlands Pension Scheme chief pensions officer Mike Woodall said: “We hope that they will retain a final salary scheme. We are already seeing too many private sector companies moving away from final salary - that can only be a retrograde step.”
The stocktake review was launched in September and a report was sent to department ministers at the end of last month.
By Jonathan Stapleton
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.
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