The government has confirmed it will proceed with a series of targeted reforms to the Local Government Pension Scheme (LGPS) in England and Wales following its consultation on access and fairness.

The consultation, launched in May 2025, received 172 responses from administering authorities, employers, representative bodies, trade unions and individual members.

In its response, the government noted broad support for the proposals it has decided to take forward, while acknowledging concerns about implementation and administrative capacity across the LGPS.

Under the reforms, which are set to come into force in April, gender pension gap data reporting will be statutory and the age cap currently in place that requires an LGPS member to have died before the age of 75 for their survivor to receive a lump sum payment will be removed.

Furthermore, authorised unpaid absences of less than 15 days will be automatically pensionable, which respondents argued would help address inequalities.

This represented a modification to the original proposal, which had suggested a 31-day threshold.

The government said the lower threshold better reflected respondents' feedback and was intended to ensure that short periods of unpaid leave did not result in unintended pension losses.

The government also confirmed that pension contributions for these unpaid absences would be calculated using actual lost pay, rather than assumed or notional pay.

Respondents largely supported this approach, with the government stating it provided a fairer and more accurate reflection of members’ earnings during periods of unpaid leave.

In addition, the response confirmed that the cost of buying back pension for longer periods of authorised unpaid leave would be aligned with standard employee contribution rates.

The time limit for members to make a buy-back election will be extended to one year from the end of the absence, or earlier if the member leaves employment, replacing the current shorter election period.

The government acknowledged that many respondents raised concerns about the practical implications of the changes, including the impact on administering authorities’ resources, systems and workloads.

In its response, it assured that it recognised the need for sufficient lead-in time and clear guidance, and would work with the LGPS Scheme Advisory Board as the detailed regulatory changes were developed.

"For too long, women have been penalised in retirement simply for having children," said Pensions Minister, Torsten Bell.

"These reforms mean that for millions of women working in local government, taking time out to care for a new baby will no longer cost them their pension security.

"This is about a pension system that works for modern families and properly values the vital contribution of working women across our public services."

Society of Pension Professionals (SPP) Public Sector Committee chair, Kirsty McLean, added: “The SPP was supportive of its proposed measures to improve access and fairness for the LGPS when we responded to the original consultation last year, so we are naturally pleased to see that the government will proceed with them.

"However, we were also very clear that they would have disruptive administrative impacts and that timing and sequencing was therefore vitally important.

"It’s good to see that government has listened, will now be introducing these changes via a phased implementation period and will work with stakeholders such as the SPP to provide accompanying guidance.”

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