CPS report “What price localism? A case study: the Local Government Pension Scheme” was featured in an article on Public Finance, Monday 23 March 2015.
To read the full article, visit the Public Finance website.
“The truth is, though, that the reforms have left in place a scheme that is still wholly unaffordable and unsustainable for local authorities, and almost no one feels able to say so.
For many directors of finance or resources the escalating cost of pensions, along with grant reductions and pressures on social care costs, will be the top three financial challenges facing their authority. Yet the issue gets very little coverage in discussions and analysis of the impact of austerity. A recent report by Michael Johnson of the Centre for Policy Studies – What price localism? A case study: the Local Government Pension Scheme – robustly challenges the new arrangements, but has been largely ignored or sidelined by the sector.
Measurements of the overall position raise significant concerns. At the last actuarial revaluation in 2013, the overall LGPS was in deficit by £47bn, with an overall funding level across the 89 different schemes of 79%. Over a third of the schemes were cash flow negative – paying out more in benefits than they collect in contributions. To put this in perspective, the Revenue Support Grant for 2015/16 announced in the recent finance settlement totals just £9.4bn.”
To read the full article, visit the Public Finance website.
Date Added: Tuesday 24th March 2015
