LGPS 2014: It's all over bar the costing
Naomi Rainey sums up the LGPS position as the new scheme takes effect
Following the dramatic delays of the 2008 reforms, Local Government Pension Scheme (LGPS) 2014 has been relatively smooth sailing.
Concerns from Unison about the absence of transitional protections were resolved almost as quickly as they were raised last week, following the Department of Communities and Local Government's (DCLG) publication of the final regulations.
There's no doubt that there has been strong collaboration between funds, trade unions and the government in bringing the necessary regulations, although it's fair to say most parties would have preferred more than three weeks' notice to implement the last batch of directions.
Yet as we head into the final two weeks before LGPS 2014 takes effect in England and Wales, there are still some unknowns ahead.
HM Treasury published its guidance for public service valuations and its cost cap mechanism this week, laying out how schemes will be measured in line with the Public Service Pensions Act 2013.
While reformed schemes that go live in 2015, including the NHS, Civil Service and Northern Ireland's LGPS funds, will have full details of the cost cap process before they implement the new scheme, the LGPS in England and Wales will retrospectively add the details following publication of 2013's model scheme valuation.
There's also the not-so-small matter of the governance arrangements for the LGPS, which will not come into effect until 2015. The regulations are likely to require the establishment and resourcing of an additional pension board separate from the local authority pension committee, it could add to pressure on the new scheme's finances.
While it's taken three years of negotiation, legislation and collaboration to make 1 April 2014 happen, it still remains unclear how long it will be before the industry does it all again.
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