UK LGPS could become PAYG

Unless radical increases in pension contributions are made by local authorities, the widening deficit in the £190 billion Local Government Pension Scheme (LGPS) may force it to become pay-as-you-go (PAYG), according to Professor Andrew Clare of London’s Cass Business School.

Clare was speaking at an event to describe the results of research he has conducted with consultants Fathom Financial which was based on modelling an aggregate scheme of the one million contributors in the local government