New LGPS employers can misjudge obligations, PLSA warns

18 May 16

Employers joining the Local Government Pension Scheme (LGPS) may underestimate the obligations involved, the Pensions and Lifetime Savings Association (PLSA) has warned.

It noted more than 10,000 employers now belonged to the LGPS, with a 14% increase in 2013-14 alone. There could potentially be thousands more schools joining should they convert to academies.

But the scale of the legal and financial obligations faced by employers in the LGPS is often underestimated, leaving entrants questioning whether they can afford to remain in it, the association said.

The PLSA is publishing a series of guides for employers in the LGPS, the first of which is designed to help them understand what they need to know before joining. There are versions for contractors and for scheduled bodies.

PLSA chief executive Joanne Segars said: “The Local Government Pension Scheme provides some fantastic benefits for its members.

“But for employers there are significant legal, financial and administrative obligations which can cause a real headache.”

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