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Local Government Pension Scheme – Member Benefits Reform

15 May 2025

Proposing MP
Jim McMahon Lab Co-op
Oldham West, Chadderton and Royton
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government
View on Parliament.uk -->

At a Glance

Issue Summary

The statement addresses proposed reforms to the Local Government Pension Scheme (LGPS) in England and Wales aimed at enhancing benefits for members, particularly women.

Action Requested

The government has launched a consultation to benefit around 15,000 LGPS members by making maternity leave up to one year automatically pensionable. The proposals also address discrimination in survivor benefits, understanding opt-outs, closing pension forfeiture loopholes, and addressing the gender pension gap by making the last 13 weeks of maternity and shared parental leave automatically pensionable.

Key Facts

  • The Local Government Pension Scheme has seven million members.
  • Women make up almost three quarters of LGPS members.
  • Average annual pensions in retirement are £5,000.
  • The consultation aims to benefit around 15,000 members.
  • Proposals include ending historic discrimination in survivor benefits and addressing the gender pension gap by making the last 13 weeks of maternity leave automatically pensionable.
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