Part 1: Public Service Pension Schemes Chapter 3: Local Government Schemes Section 78: Power to pay final salary benefits
This section allows local government new scheme regulations to be made to provide that member benefits in relation to remediable service (as defined in section 77) are final salary benefits. This is the core power that will allow LGPS regulations to be amended to remove the discriminatory provisions, by giving younger qualifying members equivalent protection to their older colleagues. In this context, a final salary benefit broadly means that a benefit has been calculated by reference to a member’s pensionable earnings when a member’s pensionable service ends, or when the member would have attained their Normal Pension Age applicable to the local government legacy scheme (usually 65). Section 78(3) allows responsible authorities to make provision that a member may only have final salary benefits in respect of a period of service where they have aggregated or transferred previous pensionable service.