The government, local government employers and the trade unions have agreed that rather than have short term temporary fixes to the LGPS, followed soon after by the long term arrangement, what will happen is that the LGPS will have its Hutton review brought forward a year.

The following is a summary of the points agreed and are likely to be the basis of a new scheme from 2014.

• Regulations to be in place by April 2013, this will allow the new scheme to be operational from April 2014. Bringing the timetable forward is a solution to finding the savings required by Treasury
• The new scheme will be based on career average earnings(a CARE scheme)
• If the new scheme can meet the savings the government needs employee contribution rates may remain relatively unchanged
• Build into the scheme some elements of choice to encourage new staff to join the scheme and help current members stay
• Membership and benefits building up in the new scheme would link to the Scheme's normal retirement age changing to match theState Pension Age or age 65, whichever is later.

Additional information

Here is the ministerial statement confirming the agreement and
supporting documents:

• Ministerial statement (.pdf format, 71Kb)
• Principles document (.pdf format, 31Kb)
• Questions and answers (.pdf format, 14Kb)