Member

16: After Clause 7, insert the following new Clause— “Local Government Pension Scheme: statutory funding objective(1) The Secretary of State must by regulations specify a statutory funding objective for the Local Government Pension Scheme. (2) The funding objective must have regard to—(a) the long-term ability of scheme employers to meet contribution costs,(b) the fair distribution of costs and risks between current and future taxpayers,(c) the open and ongoing nature of the Scheme, and(d) the appropriate management of investment and longevity risk.(3) In setting or revising the funding objective, the Secretary of State must publish an assessment of the extent to which the objective prioritises—(a) risk elimination,(b) contribution stability and affordability, and(c) intergenerational equity.(4) Administering authorities must have regard to the statutory funding objective when commissioning actuarial valuations.(5) Regulations under this section are subject to the affirmative procedure.”Member’s explanatory statement This amendment requires the Secretary of State to set a clear statutory funding objective for the Local Government Pension Scheme, clarifying the balance between prudence, affordability and intergenerational fairness.