Gail and Finlay have been providing presentations on the Local Government Pension Scheme, providing an overview of the current scheme and all the proposed changes that will take place in April 2005, 2006 and 2008.

The presentations to date have been very well received and if your employer would like a presentation then they should contact Gail Lindsay, Pensions Manager Benefits (01224 814950) to arrange a suitable date and venue.

• The retirement in the LGPS is not being increased to age 65 - the retirement age in the scheme has been 65 since 1922

• The reason behind the proposed 2006 Regulation changes is that people are living longer and drawing their pensions for longer. The changes are not related to the funding position of the Local Government Pension Fund

• To offset the cost of members drawing their pension for longer, the 85 year rule (which allowed members who met the rule to draw an unreduced pension earlier than 65) is being removed for new members and phased out for existing members (see next bullet point)

• All the benefits that members have accrued in the scheme up to 31 March 2006 (or up to 31 March 2013 for those who will be 60 and would achieve the rule of 85 at date of leaving) will not be subject to any reduction

• Only benefits that accrue after that date will be paid at a reduced rate if the member retires before age 65

• No reduction will be applied to benefits if a member retires on the grounds of permanent ill health, redundancy or efficiency of the service

• Members, who retire prior to age 65, who would not achieve the rule of 85 under the current scheme will be in no worse a position with the removal of the rule of 85. Their benefits would have been reduced under the current rules and will still be reduced under the new rules

• Members will still be able to retire from age 60 (or before with their employer's consent)

• The changes are part of the Government's policy to address longevity and demographic issues