Local Government Pensions Committee
Secretary: Charles Nolda
CIRCULAR
Please pass on sufficient copies of this Circular to your Treasurer/Director of Finance and to your
Personnel and Pensions Officer(s) as quickly as possible
No. 131 – MARCH 2003
PENSIONS FOR COUNCILLORS
Purpose of this Circular
1. This Circular has been issued in response to numerous enquiries about pensions for
eligible councillors.
2. The LGPC understands that the relevant regulations introducing pensions for eligible
councillors in England are not likely to be operative before 1 April 2003 and may in fact
not come into force until after that date. The LGPC Secretariat is not in a position to
issue detailed information at this point in time but will endeavour to do so at the earliest
opportunity.
Background to the Government's Proposals in Respect of Pensions for Eligible
Councillors in England
3. Section 99 of the Local Government Act 2000 includes powers for the Secretary of
State to:

make provision for the payment of pensions to such members of a local authority
as may be prescribed by regulations; and

make regulations prescribing the role of the independent remuneration panel in the
process of determining which member positions may receive pensionable
remuneration.
Employers’ Organisation for local government
Layden House, 76-86 Turnmill Street, London EC1M 5LG
Tel 020 7296 6745 fax 0207296 6739 www.lg.employers.gov.uk/penions/index.html
Email terry.Edwards@lg-employers.gov.uk
Executive Director: Charles Nolda
Registered in England No 2676611 Registered office: Local Government House, Smith Square, London SW1P 3HZ
4. Following representations, the Government has decided not to restrict membership of
the LGPS to members of a local authority’s executive and chairs of overview and
scrutiny committees who have held the chair for at least 6 months. This decision was
published in the Government’s response to the Transport, Local Government and
Regional Affairs Select Committee’s Report on How the Local Government Act 2000 is
Working (paragraph (y) of Command Paper 5687).
5. The Government now proposes that, subject to Parliamentary approval:


the independent remuneration panel1 should make recommendations as to which
members of an English authority2 (who are under age 70) should be entitled to
membership of the LGPS and have their basic or special responsibility allowances
made pensionable3; and
a council will only be able to make membership of the LGPS available to those
elected members who are recommended for membership of the LGPS by the
independent remuneration panel, but the council can decide not to offer
membership to some or all of the recommended councillors.
Pensions for Councillors in Wales
6. It is understood that Ministers from the Welsh Assembly have been in touch with the
Secretary of State regarding pensions for councillors in Wales. The outcome may be
that regulations will eventually be made (say from April 2004) mirroring for the most
part the regulations about to be made in England.
Terry Edwards
Assistant Director (Pensions)
3 March 2003.
The Office of the Deputy Prime Minister will be issuing guidance on the payment of allowances and on the
establishment and maintenance of independent remuneration panels.
2 A County Council, District Council or London Borough Council.
3 Any dependants carers’ allowance, travelling and subsistence allowance, and / or co-optees’ allowance is not to
be pensionable.
1
Distribution
Chief Executives of Local Authorities in England and Wales (3 copies)
Pension Managers of Administering Authorities
Pension Managers (outsourced) and Administering Authority Client Managers
Officer Advisory Group
Local Government Pensions Committee
Trade Unions
ODPM
COSLA
SPPA
Private Clients
Website
Visit the LGPC website at:
http://www.lg-employers.gov.uk/pensions/index.html
Copyright
Employers’ Organisation for Local Government (the EO). This Circular may be reproduced without the prior
permission of the EO provided it is not used for commercial gain, the source is acknowledged and, if regulations
are reproduced, the Crown Copyright Policy Guidance issued by HMSO is adhered to.
Disclaimer
The information contained in this Circular has been prepared by the LGPC Secretariat, a part of the Employers'
Organisation. It represents the views of the Secretariat and should not be treated as a complete and authoritative
statement of the law. Readers may wish, or will need, to take their own legal advice on the interpretation of any
particular piece of legislation. No responsibility whatsoever will be assumed by the Employers' Organisation for
any direct or consequential loss, financial or otherwise, damage or inconvenience, or any other obligation or
liability incurred by readers relying on information contained in this Circular. Whilst every attempt is made to
ensure the accuracy of the Circular, it would be helpful if readers could bring to the attention of the Secretariat any
perceived errors or omissions. Please write to:
LGPC
Employers' Organisation for Local Government,
Layden House
76 - 86 Turnmill Street
London, EC1M 5LG
or e-mail terry.edwards@lg-employers.gov.uk