Certificate of Compliance

If you are asked about a certificate of compliance for the LGPS (to show that it is a Qualifying Scheme) you can pass on the following information provided by the Local Government Association (LGA).

“The LGPC Secretariat has obtained confirmation from the Department of Work and Pensions (DWP) which confirms that as the LGPS is a public sector, final salary, contracted-out occupational scheme there is no requirement for employers using the scheme to self-certify that it meets the quality requirements for being an automatic enrolment scheme. Guidance published in July 2012 by the DWP entitled Automatic Enrolment: Guidance for employers on certifying defined benefits and hybrid pension schemes outlines (in section 2.6) that final salary schemes that are contracted-out of the state second pension automatically qualify as automatic enrolment schemes. The contracting-out certificate is taken as evidence that the scheme satisfies the quality requirements. The LGPC Secretariat has been informed by DWP that when this guidance is next updated it will be amended to more clearly reflect that employers using the LGPS do not require a certificate of compliance.”

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