29 October 2002

1. With the agreement of Ministers, and following the undertaking given in the Department’s letter of 16 May, I enclose a discussion paper which suggests several possible ways in which the current legal framework governing the Scheme as it stands might be simplified, reduced and made simpler for the benefit of all LGPS interested parties and which could provide a fresh basis for any future Scheme regulatory changes.

2. As emphasised in the Department’s letter of 9 September covering the benefits package options discussion paper, the prime purpose of this second stage of the stocktake exercise is to use a series of discussion papers as a basis to generate analysis and comments from among all the LGPS interests in England and Wales on the concepts and suggestions raised by the papers. It should be emphasised, once again, that no specific regulatory changes are being envisaged or proposed to the current Scheme’s provisions and no entitlements are affected.

3. The discussion paper deliberately builds on the extensive work previously undertaken by the Department, with the strong support of LGPS interests, which resulted in the consolidated 1995 provisions and, subsequently, the extant 1997 Scheme provisions. That work involved a radical series of amendments to the form and content of the Scheme’s regulatory framework. This present exercise now seeks to take that work a step further, particularly within the context recently provided by the report submitted by Alan Pickering to the Secretary of State for Work and Pensions earlier this year. The Government’s Green Paper response to the recommendations of that review, and particularly the Inland Revenue’s review of its requirements will provide a framework for the particular focus LGPS interests will wish to take in responding to this discussion paper.

4. The Department is, as always, happy to contribute to discussions and to expand, where appropriate, on the concepts put forward for debate. Several Pension Officer Groups, the Employers’ Organisation, individual LGPS administering authorities and other interests, including CIPFA and the Society of County Treasurers, have already engaged positively in the exercise. Others are invited to do so by contacting the Department.

5. Any enquiries and eventual responses to the discussion paper should be sent to Michael Groves, Local Government Pensions Division, ODPM, at Zone 2/E7, Ashdown House, 123 Victoria Street, London SW1E 6DE, or by e-mail to michael.groves@odpm.gsi.gov.uk by close on 17 March 2003.

 

 

 

 

 

The Chief Executive of:

County Councils (England)

District Councils (England)

County and County Borough Councils in Wales

London Borough Councils

South Yorkshire Pensions Authority

Tameside Metropolitan Borough Council

Wirral Metropolitan Borough Council

Bradford Metropolitan City Council

South Tyneside Metropolitan Borough Council

Wolverhampton Metropolitan Borough Council

London Pensions Fund Authority

Environment Agency

Town Clerk, City of London Corporation

Clerk, South Yorkshire PTA

Clerk, West Midlands PTA

The Secretaries of:-

Local Government Association

LGPC

EO

SOCPO

SOLACE

ALACE

CIPFA

New Towns Pension Fund

Trades Union Congress

UNISON

TGWU

GMB

Audit Commission

UCEA

Other Government Departments

GAD

DoE (NI)

SPPA