The Ministry of Housing, Communities and Local Government and the Department for Work and Pensions have confirmed a package of Local Government Pension Scheme reforms for England and Wales. The measures are scheduled to take effect from 1 April 2026 and focus on reducing the gender pension gap and standardising survivor outcomes. (gov.uk)
The government’s announcement highlights four core changes: statutory gender pension gap reporting; automatic pensionability of unpaid additional maternity, shared parental and adoption leave; equalisation of survivor benefits across relationship types; and removal of the age‑75 cut‑off for death grant eligibility. Ministers present the package as targeted support for women working in local government. (gov.uk)
Mandatory gender pension gap reporting begins in the 2025 actuarial valuation cycle. For 2025 only, funds must publish a simplified fund‑level measure based on pension accrued to date, split by existing employer category groups; employer‑level reporting and a fuller methodology are planned for 2028. The Government Actuary’s Department will issue implementation guidance. (gov.uk)
From 1 April 2026, unpaid additional maternity, additional adoption and shared parental leave will be automatically pensionable, with the employer meeting the contributions. In addition, authorised unpaid absences of fewer than 15 days will become pensionable on an ‘actual lost pay’ basis; for longer unpaid breaks, the buy‑back window extends to one year and the cost aligns with standard member contribution rates. (gov.uk)
Survivor benefits will be equalised so all eligible survivors receive the most favourable entitlement currently available, removing differences by sex or relationship type. Backdating will apply from 5 December 2005 for opposite‑sex marriages, 13 March 2014 for same‑sex marriages, and 31 December 2019 for opposite‑sex civil partnerships. The long‑standing nomination form requirement for qualifying cohabitees between 1 April 2008 and 31 March 2014 will be removed, formalising existing administrative practice. (gov.uk)
The death grant age‑75 cap will be removed and applied retrospectively to deaths on or after 1 April 2014. The rule that forces payment to a personal representative if a grant is unpaid after two years will also be withdrawn, reflecting wider tax changes in the Finance Act 2004 as amended. Guidance is expected to cover tax treatment and interest on backdated payments. (gov.uk)
Implementation will be phased during 2026. Priorities for the start of 2026–27 include survivor benefit and death grant changes, the unpaid‑absence element of the gender pension gap package, and the reduced 2025 valuation reporting. Fuller gender pension gap reporting and opt‑out reporting follow later in 2026. The government acknowledges administrator feedback calling for a lead‑in period and detailed guidance. (gov.uk)
To improve retention and evidence on member behaviour, administering authorities will publish the rate of opt‑outs for the 2026–27 scheme year in annual reports due by December 2027. Regulation 80 will be amended to require employers to supply opt‑out data, and a voluntary online form hosted by the department will collect reasons for opting out. (gov.uk)
These reforms apply to the LGPS in England and Wales, as set out in the government consultation and response. Separate schemes operate in Scotland and Northern Ireland under their own regulations; this article does not cover those arrangements. (gov.uk)
Operationally, administering authorities and employers should prepare payroll and HR changes to capture pension contributions on qualifying unpaid leave from 1 April 2026, plan survivor benefit recalculations and any back‑payments, and schedule actuarial and software updates for 2025 valuation reporting. The government response confirms that guidance will be produced with the Scheme Advisory Board and the Government Actuary’s Department. (gov.uk)
According to the government, the LGPS in England and Wales has close to seven million members and around three‑quarters are women, with maternity leave identified as a major driver of the gender pension gap. Unions have welcomed the package and urged similar action across the wider public sector. (gov.uk)