4th October 2021 HMT responds to Cost Control consultation

HM Treasury has published the outcome to the Public service pensions: cost control mechanism consultation which closed on 19th August 2021. The response confirms that the mechanism will, from the 2020 scheme valuation, move to a reformed scheme only design with a 3% corridor and will introduce an economic check.

Although not directly addressing the concerns of the LGPS the response does acknowledge them and commits to discussing with stakeholders appropriate ways to introduce these changes, how the E&W SAB cost management process can be adapted and how the principle of that process could be extended to the Scotland and NI schemes.