The UK government has extended access to the Local Government Pension Scheme (LGPS) to councillors and mayors in England.
The new rules took effect on 11 May following local elections and mean that service from that date onwards will be pensionable in the scheme.
The timing of the policy was intended to reduce administrative complexity and avoid short periods of LGPS membership for councillors leaving office shortly after entry.
Membership is on an opt-in basis, placing particular importance on clear communication to elected members about their options.
The move aligns England with Scotland, Wales and Northern Ireland, where elected members have continued to have access to the LGPS.
Government Actuary’s Department (GAD) supported the Ministry of Housing, Communities and Local Government (MHCLG) pensions team throughout the development of this policy. It also provided actuarial analysis, including modelling the likely additional annual cost of extending scheme access.
In a briefing note ahead of the policy going live, Steven Scott, partner at Hymans Robertson, said the consultation responses showed majority support for extending LGPS access to councillors and mayors in England, with broad acceptance that elected office represents a significant public service that warrants pension provision.
The main concerns related to cost and to differences between elected office and conventional LGPS employment, including the political nature of the role and variability of workload. Despite these concerns, most respondents supported proceeding with the proposals.
Some respondents suggested adopting a modified regulatory approach like that used in Wales. The government rejected this option, citing insufficient time to develop and implement a separate framework, and confirmed that councillors and mayors in England will participate in the same benefit structure as other LGPS members.
Scott explained that under the confirmed approach, councillors and mayors will accrue benefits on the same basis as other LGPS members, including access to the 50/50 section. Pensionable pay will comprise basic allowance and any special responsibility allowances.
In addition, councillors will not be permitted to make additional voluntary contributions, and employers will not be able to award additional pension contributions, and elected members will accrue LGPS benefits for pension built up during their period of office, in line with standard rules.
The first annual benefit statements are expected to be issued in accordance with LGPS requirements, with the earliest statements due by the end of August 2027.
Kirsty McLean, chair of the Society of Pension Professional’s (SPP) public sector committee, said: “In responding to the recent government consultation, SPP members had mixed views on the merits of extending LGPS access, being conscious of practicality and the additional resource needed to administer what could in some cases be small benefits in what are already very busy times for the LGPS.
“Now the decision has been made, we encourage all who are eligible to opt-in and welcome the opportunity for those in positions of responsibility to engage with and promote the benefits offered by the LGPS to all its members.”
