Mayors should be included in Local Government Pension Scheme, but councillor access “not a clear cut issue”, say pensions professionals

In a consultation response to the Government's proposed LGPS reforms, the Society of Pensions Professionals (SPP) said mayors should be included in the scheme due to the "great deal of commitment" involved in the role.

The membership body - which represents actuaries, lawyers, accountants, professional trustees, consultants, investment managers, providers, and administrators in the pensions sector - meanwhile said including councillors in the scheme was "not a clear-cut issue".

Councillors were excluded from the LGPS in 2014 under David Cameron's Government, which argued that councillors were volunteers, not full-time politicians.

However, the Ministry of Housing, Communities and Local Government launched a consultation in October, arguing that access should be restored to reflect the "vital public service" that mayors and councillors offer.

Commenting on the inclusion of mayors, the SPP said it believed this proposal "makes sense given that the role of mayor requires a great deal of commitment and, arguably, similar to that required of a Police and Crime Commissioner, who already have access to the LGPS".

It added: "It would therefore seem unfair to allow Police and Crime Commissioners access to the LGPS, whilst barring entry of the Scheme for mayors."

The body meanwhile reported that there was "not broad agreement" among its members on whether or not councillors should be given access “but instead a range of views which is likely to be reflective of wider society”.

The response said: "It has been argued that as councillors are volunteers undertaking public service; they are not and should not be employees of the council dependent on the municipal payroll. It is obvious that they are not professional, full-time politicians like Members of Parliament and it is important to note that councillors receive an allowance rather than a salary.

"That said, a precedent has already been created, not simply because they were previously enrolled in the LGPS but because councillors of Welsh councils are currently entitled to LGPS membership."

The SPP noted that the average allowance for a councillor is £7,000 per annum and the average length of service is just 9.5 years.

In light of this, it said "it is clear that these changes are unlikely to cost the taxpayer a great deal".

However, the response also said that access to the scheme is "unlikely to result in any significant degree of pension benefit" for individual councillors.

"As such, it is arguable whether or not the administrative complexity and resources required for relatively little return is a prudent use of taxpayer money and resource," the response said.

The Government's consultation is set to close on 22 December.

Adam Carey