The government has announced measures to close the gender pensions gap and improve pensions for millions of women working in local government.
Under reforms due to come into force in April, gender pensions gap data reporting will become statutory, and unpaid additional maternity, shared parental and adoption leave will become automatically pensionable.
Around three-quarters of the Local Goverment Pension Scheme’s (LGPS) near seven million members are female and, with maternity leave being one of the most significant causes of the gender pension gap, the government wants to take action to tackle this.
The incoming measures will directly benefit working people on the front line, for example, those serving school lunches, cleaning buildings, managing libraries, and cleaning streets.
Torsten Bell, minister for pensions, said: “These reforms mean that for millions of women working in local government, taking time out to care for a new baby will no longer cost them their pension security. This is about a pension system that works for modern families and properly values the vital contribution of working women across our public services.”
Paul Nowak, general secretary at Trades Union Congress, added: “These measures are an important step forward, they will make a meaningful difference for millions of women working in local government, helping them to build up a decent pension. It’s now vital we see more action to close the gender pensions pay gap across the whole workforce, including by extending this approach to the rest of the public sector.”
Justin Corliss, pension expert at Royal London, said: “The reforms to LGPS coming into effect in England and Wales from April will be welcomed, particularly by women, who are often low paid. It’s important public sector pension schemes continue to make sure that the structure of benefits provided aligns with the demographic of their workforce.
“These changes will help reduce the gender pensions gap by ensuring that a break in employment to provide care to others, including children, does not automatically result in a lower retirement income. Further changes help correct historic inequalities in the amount of pension paid to a loved one on the death of their partner. With most people living beyond age 75, removing the age cap for the death grant to be paid will benefit many people.”
