FINANCE

Falling LGPS membership could undermine scheme

Experts cast doubt on long-term sustainability of Local Government Pension Scheme (LGPS) due to soaring rates of redundancy and early retirement.

The number of people leaving the Local Government Pension Scheme (LGPS) due to redundancy or early retirement has soared in recent years, leaving some experts doubting the long-term sustainability of the retirement fund.

Data released by the Department for Communities and Local Government show that the number of people leaving the £143bn LGPS because of redundancy in 2010/11 increased by 40%, compared with figures for 2009/10, to more than 17,600.

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