Guidance Released to Tackle Gender Pension Gap in Local Government Scheme
The Government Actuary’s Department (GAD) has introduced pivotal guidelines for gender pension gap reporting within the Local Government Pension Scheme (LGPS). This initiative, undertaken in collaboration with the Ministry of Housing, Communities and Local Government (MHCLG), aims to enhance fairness in retirement outcomes for scheme members, particularly women, who represent approximately 75% of the nearly 6.9 million members.
Addressing Inequalities in Pension Distribution
Recent analyses have highlighted significant disparities in pension accumulation between genders. According to the GAD’s 2023 findings, women’s average accrued pensions are, on average, 35% lower than those of men in the post-2014 scheme—a gap that widens to 45% in schemes established prior to 2014. These figures underscore the urgent need for action to address systemic inequalities in pension contributions.
Methodology for Reporting
The newly established reporting requirements set forth by MHCLG will necessitate that administering authorities include the gender pension gap in their fund-wide actuarial valuations by 2025. This marks the first instance of a unified approach to measuring gender discrepancies across all LGPS funds.
The emphasis is on accrued pensions, which pertain to the amount already earned by active and retired members. By leveraging existing data, funds will be well-equipped to begin this reporting process by March 2026.
Collaborative Efforts for Reform
This guidance is part of a broader strategy aimed at rectifying gender pension gaps identified in the government’s Access and Fairness consultation response. Proposed reforms include initiatives to enhance pension accrual for members taking unpaid or child-related leave, representing a significant step towards greater equity.
Leadership in Gender Pension Reporting
With these reforms, the LGPS is taking the lead among public sector pension schemes in gender pension gap reporting. This proactive stance sets a precedent that could encourage similar measures across the wider pensions sector, effectively addressing inequality before it becomes entrenched. The anticipated reporting sections in actuarial documents will bring visibility to gender disparities, promoting transparency among stakeholders.
Ongoing collaboration between GAD and MHCLG will ensure continued monitoring and exploration of further options to support pension equity.
Supporting Stakeholders’ Equality Initiatives
GAD remains committed to assisting various public sector entities in implementing fairness and equality measures within their pension schemes. The department offers tailored support that includes:
- Data analysis to assess workforce experiences
- Advice on uniform measurement methods for monitoring
- Guidance on action planning
- Strategies for risk mitigation
Source: official statements, news agencies, and public reports.
https://www.gov.uk/government/news/supporting-lgps-gender-pension-gap-reporting






























