Backing LGPS Gender Pension Gap Reporting

GAD guidance supports gender pension gap disclosure in 2025 local government fund valuations.

The Government Actuary's Department (GAD) has made another important contribution to equity in retirement. We have written the first guidance for gender pension gap reporting to co-ordinate gender pension gap reporting (PDF, 740KB) in the Local Government Pension Scheme (LGPS).

The Ministry of Housing, Communities and Local Government (MHCLG) has issued this guidance in parallel with its Access and Fairness consultation response .

The step-by-step process outlined below explains how MHCLG is working to achieve more equitable retirement outcomes for LGPS members and is a useful reference for others involved in public service pensions. GAD has supported MHCLG throughout by:

sharing data insights
specifying measurement frameworks
collaborating with action planning
supporting risk mitigation

Step 1: Revealing the scale of inequality through data

GAD's 2023 analysis for the Scheme Advisory Board exposed significant gender pension gaps in the LGPS: women's average accrued pension is 35% lower than men's in the post-2014 scheme, rising to 45% in the pre-2014 scheme.

With around three-quarters of the scheme's almost 6.9 million members being women, these insights revealed workforce dynamics that MHCLG and LGPS stakeholders felt required action.

Step 2: Creating measurement frameworks that drive change

The new MHCLG reporting requirements translate these insights into actionable metrics.

For the first time, administering authorities should now report fund-wide gender pension gaps in their 2025 actuarial valuations, including a breakdown by employer type. This creates consistent gender pension gap measurement across all LGPS funds.

GAD's guidance focuses on data already collected by each fund's actuaries, ensuring administering authorities can immediately commence reporting from March 2026.

This initial framework focuses on accrued pensions (that is, the amount of pension earned to date) for active and pensioner members. It requires breakdowns based on existing scheme employer categorisations as a pragmatic step towards individual employer level reporting. Updated guidance will be issued ahead of future valuations to further enhance reporting standards.

Jenny Bullen, the GAD actuary leading the work, said: "This guidance demonstrates collaborative working across government and the pensions sector. We've worked in partnership with MHCLG and LGPS stakeholders to develop robust standards that provide valuable insights into gender pension gaps while being deliverable within the current valuation cycle."

Step 3: Enabling practical action planning

The gender pension gap reporting forms part of a wider package of gender pension gap reforms confirmed in the government's access and fairness consultation response. These include improving pension accrual during unpaid leave and child related leave.

As shared in the original consultation document, GAD supported MHCLG and scheme stakeholders with evaluating and agreeing these important reforms by providing evidence on the expected costs of these proposals.

Step 4: Mitigating future risks through sector leadership

MHCLG's updated policies mean the LGPS now leads public sector pension schemes in gender pension gap reporting. This precedent encourages wider adoption across the pensions landscape, helping mitigate inequality risks before they become more entrenched. The dedicated reporting sections in valuation reports will make gender gaps visible to all stakeholders.

GAD will continue to work with MHCLG, and others, to monitor these reports and consider further options to promote pensions equity.

Supporting your scheme's equality journey

GAD continues to support public sector clients across all sectors with equality and fairness measures. We can help develop approaches tailored to your scheme whether you need: