Broadly comparable scheme

In some cases, a contractor may offer access to a broadly comparable scheme rather than the LGPS. A ‘broadly comparable’ scheme is a pension scheme  that is certified by an actuary as being similar in overall value and benefits to the LGPS. It doesn’t have to offer the same benefits, but it  must offer benefits that are, overall, comparable to those with the LGPS.

These benefits include aspects like:

• the accrual rate
• retirement age
• death in service benefits, and
• spouse’s or partner’s pensions.

To make sure that the alternative pension scheme is truly ‘broadly comparable’, the Governments Actuary Department (GAD), or another independent actuary can do an actuarial assessment.

This assessment compares the benefits within the LGPS with those offered by the new pension scheme. If the scheme meets the necessary criteria, it can be considered broadly comparable. This would satisfy the legal requirements and make sure that employees’ pensions are protected during the transfer. A scheme must be certified as being broadly comparable before it can be offered instead of the LGPS.