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Department for Education Local Government Pension Scheme (LGPS) Guarantee

12 November 2024

Proposing MP
Houghton and Sunderland South
Type
Written Ministerial Statement
Department
Department for Education

At a Glance

Issue Summary

The statement addresses a government commitment to fund pension deficits for Further Education providers through the Local Government Pension Scheme Guarantee.

Action Requested

The Department for Education is laying before both Houses a Departmental Minute that outlines the use of a contingent liability to provide a guarantee for Further Education providers in case of closure and insufficient reserves. LGPS administering authorities are expected to recognise this Crown guarantee in their funding strategies.

Key Facts

  • The Department for Education has provided an LGPS Guarantee to Further Education providers.
  • The guarantee funds pension deficits if the provider’s reserves are insufficient upon closure.
  • A full Departmental Minute detailing the contingent liability is laid before both Houses.
Assessment & feedback
Summary accuracy