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Academy Trust and Local Government Pension Update

21 July 2022

Proposing MP
James Cleverly Con
Braintree
Type
Written Ministerial Statement
Department
Department for Education
View on Parliament.uk -->

At a Glance

Issue Summary

The statement discusses the continuation and modification of a government guarantee for Local Government Pensions Scheme (LGPS) administering authorities related to academy trust closures.

Action Requested

The Minister announces the continued provision of a guarantee with an increased annual ceiling of £20m, and requests that LGPS administering authorities reflect this direct Government backing in their scheme valuations and employer contribution rates.

Key Facts

  • In 2013, a guarantee was introduced to Local Government Pensions Scheme (LGPS) administering authorities regarding academy trust closures.
  • The annual limit for the Guarantee has been set at £20m per annum.
  • Payments under the Guarantee policy in recent years were: 2021/22: £3m, 2020/21: £4m, 2019/20: £11m.
  • The Guarantee provides direct Government backing for certain pension costs enabling LGPS administering authorities to treat academies equitably with Local Authority maintained schools.
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