The Government recognises the different, funded nature of LGPS schemes to other public service pensions, and that is why it has taken into consideration points raised about the appropriateness of the planned reforms and potential allowances for these schemes.
Moving to a reformed scheme only model means that legacy benefits risks will sit with employers in funded LGPS schemes. However, the Government still believes that a reformed scheme only design is appropriate for LGPS for the same reasons as with other schemes, and will work with LGPS stakeholders to consider the most appropriate way to implement this proposal for LGPS at the 2020 and subsequent valuations, including the treatment of the underpin.
The Government will still introduce an economic check, but because of their different, funded nature, will work with LGPS Scheme Advisory Boards (SAB) to agree a process for an LGPS specific discount rate to be used as part of their own SAB cost management process.