The new LGPS started on 1 April 2014 in line with an agreement between the unions, employers and the government. A UNISON briefing provides a summary of the benefits and protections that are now laid down in law.
The new Scheme is a Career Average Revalued Earning Scheme (CARE). This is a type of defined benefit scheme that uses a members averaged pensionable earnings over the lifetime of their active scheme membership.
Members will recall that the new scheme is a far better scheme for workers than that originally called for by the Government. Not least, contributions have not increased for most members (the Government had demanded that the contribution rate increase by 50% in order to make the scheme ‘sustainable’), and members continue to have access to a pension far superior to most money-purchase schemes.
This achievement by itself shows the immense value of UNISON membership.