The government will allow the Local Government Pension Scheme (LGPS) to ditch Lord Hutton's proposals for a career average scheme and keep the final salary arrangements, a source close to government said.
IFAOnline's sister title Professional Pensions was told the Treasury will let employers and trade unions vary the government's proposed career average scheme and keep final salary benefits for members if it can justify this as fairer. This comes despite Chancellor George Osborne saying in March 2011 there would be no "cherry picking" on Hutton's reforms. However, the source said LGPS representatives will have to convince the Treasury any plans to preserve final salary is within the gross cost ceiling of 17.3% and justify how it meets Hutton's "fairness" agenda. The source said: "Ye...
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