The Access and Fairness scheme changes for the LGPS Pension Scheme aims to improve the scheme’s fairness and accessibility for its members.
Following a recent consultation, a number of improvements are being introduced to strengthen equality within the scheme and make sure members and their loved ones are treated consistently.
What’s Changing?
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Closing gaps and improving equality
The changes are designed to help address issues such as the gender pensions gap and remove historic differences in how benefits have been calculated.
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Fairer survivor benefits
The way survivor pensions are worked out will be updated so that eligible spouses and civil partners are treated equally. Importantly, entitlement will no longer depend on when you joined the scheme or which section you were a member of. Not all survivor pensions will be affected. If a survivor pension is affected by this change, it will increase.
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Consistent treatment for all members
In the past, benefits could vary depending on membership history. The new approach ensures members with similar service are treated in the same way, bringing greater fairness and clarity.
When Will This Happen?
The changes will take effect from 1 April 2026 and will be backdated where appropriate. This means that in some cases, benefits may be reviewed and adjusted to reflect the new, fairer rules.
Key Upcoming Changes
Payment of Death Grants
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Removal of the Age Limit
Previously, a death grant could not be paid if a member died after the age of 75. This age restriction has now been removed and applies to deaths occurring on or after 1 April 2014. Funds will contact families who may be affected by this change. These changes will also cover beneficiaries of members who died after the age of 75 and who would now qualify for a backdated lump sum death grant payment.
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Faster Payments to Families
Currently if a Death Grant can not paid two years after a members a death a tax charge is payable on the Death Grant. The two year limit is now being removed
Addressing the Gender Pension Gap
Several changes have been introduced to help close the gender pension gap:
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Unpaid Breaks
Short absences of less than 15 days will now count towards your pension. Pension benefits for these periods will be calculated based on the pay you would have received.
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Buying Back Pension
If you take an unpaid break of more than 14 days, you can choose to buy back the pension you lost during that period at the standard cost.
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More Time to Decide
The deadline for deciding whether to buy back lost pension after an unpaid break with your employer picking up some of the cost has been extended from 30 days to one year, as long as you remain employed by the same employer.
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Employer Support
Employers may now choose to contribute towards the cost of buying back pension for authorised absences that last longer than three years.
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Child-Related Leave
The scheme now includes unpaid additional maternity leave, unpaid adoption leave, and unpaid shared parental leave within its definition of child-related leave.
Additional LGPS changes are anticipated later this year and updates will be provided.
