Women working in local government will see their pensions improve under new reforms introduced by the Government aimed at addressing the gender pension gap.
The measures, which are set to come into force in April, include making unpaid additional maternity, shared parental and adoption leave automatically pensionable.
In addition, gender pension gap data reporting will be made statutory.
The Government said around three-quarters of the Local Government Pension Scheme’s near seven million members are women and one of the most significant causes of the gender pension gap is maternity leave.
Torsten Bell, minister for Pensions, said: “For too long, women have been penalised in retirement simply for having children.
“These reforms mean that for millions of women working in local government, taking time out to care for a new baby will no longer cost them their pension security. This is about a pension system that works for modern families and properly values the vital contribution of working women across our public services.”
Paul Nowak, general secretary of the TUC, said the pension gap means that too many women face “hardship”.
“That’s why these measures are an important step forward – they will make a meaningful difference for millions of women working in local government, helping them to build up a decent pension.
“It’s now vital we see more action to close the gender pensions pay gap across the whole workforce, including by extending this approach to the rest of the public sector,” he added.
Other measures include backdated payments and increased future pension payments to ensure that all surviving partners of eligible members are given the same pension as other survivors regardless of the type of relationship they were in. The Government said there had been instances where people in same-sex marriages and civil partnerships have received a more generous pension entitlement than those in opposite-sex marriages and partnerships.
A further change will be the removal of the age cap currently in place that requires an LGPS member to have died before the age of 75 for their survivor to receive a lump sum payment.
Justin Corliss, pension expert at Royal London, said the reforms will be welcomed by women.
“It’s important public sector pension schemes continue to make sure that the structure of benefits provided aligns with the demographic of their workforce. These changes will help reduce the gender pensions gap by ensuring that a break in employment to provide care to others, including children, does not automatically result in a lower retirement income.
“Further changes help correct historic inequalities in the amount of pension paid to a loved one on the death of their partner. With most people living beyond age 75, removing the age cap for the death grant to be paid will benefit many people.”
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