Academy trusts and local government pension scheme liabilities
How we will guarantee payments for outstanding local government pension scheme (LGPS) liabilities when an academy trust closes.
Applies to England
Documents
Details
This guidance is for:
- academy trusts
- LGPS administering authorities
- LGPS actuaries
The DfE local government pension scheme guarantee for academy trusts explains how the guarantee can:
- reduce the pension costs for an academy trust and remove a potential barrier to a local-authority-maintained school seeking to convert to an academy
- enable an administering authority to apply lower risk ratings to an academy trust, on the same level as a local-authority-maintained school
- cover unpaid pension liabilities on a trust closure, where the trust has insufficient funds to service their liability
The parliamentary minute was laid on 21 July 2022 with statements made in the House of Commons and the House of Lords. This minute updates the previous one laid on 2 July 2013.
Updates to this page
Published 2 July 2013Last updated 7 May 2024 + show all updates
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Added a definition of pass-through arrangement to 'DfE local government pension scheme guarantee for academy trusts: pensions policy for outsourcing arrangements'.
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We have published the pensions policy for outsourcing arrangements for academy trusts.
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Added information about the DfE academy trust local government pension scheme guarantee and the 2022 parliamentary minute.
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First published.