MD3530 Provision of pensions for the Mayor of London and London Assembly Members

1.1.    Section 26 of the Greater London Authority Act 1999 (GLA Act) provides for the Mayor and the London Assembly, jointly, to make determinations in provision for the payment of pensions to the Mayor and Assembly members (collectively GLA Members), as the GLA may determine from time to time.

1.2.    Under this provision, GLA Members were in the Local Government Pension Scheme (LGPS) from 2000 to 2016.

1.3.    Following the GLA elections in May 2016, and government legislative changes, GLA Members were no longer eligible for LGPS membership.

1.4.    In 2018 – following a London Assembly decision, and via Mayoral Decision 2215 – the GLA established an alternative pension scheme (GLA Members’ Pension Scheme). This was facilitated by Aviva. 

1.5.    In 2026, the government reversed a previous decision; and announced that, from 11 May 2026, it would give GLA Members access to the LGPS. Unlike other LGPS employers, the GLA is required to make its own determinations, relating to the provision of pensions, before GLA Members can access the LGPS. 

1.6.    Access to the LGPS will be on an opt-in basis, rather than via automatic enrolment. To onboard GLA Members, and facilitate the scheme appropriately, it is proposed that access to the LGPS is granted from 9 August 2026. 

1.7.    It is also proposed that the GLA ceases contributions to the GLA Members’ Pension Scheme on 7 May 2028. Until this date, those who are currently in the GLA Members’ Pension Scheme can remain so, if they do not wish join the LGPS. They cannot have contributions paid to both schemes simultaneously. 

1.8.    The proposal to run two schemes in parallel, through to May 2028, reflects the fact that LGPS members are subject to a two-year vesting period. The next GLA elections are also scheduled for May 2028; as a result, GLA Members cannot guarantee they will meet this vesting period without (in some cases) taking additional action (such as transferring in previous pension benefits; or relying on the existing LGPS service). This will be a matter for individual GLA Members to consider. The two-year vesting period will not be a material consideration for GLA Members elected in 2028; it is therefore considered appropriate to move to one scheme after this point.  
 

2.1.    The objective of this decision is to reflect national legislative changes concerning LGPS access for GLA Members. 

3.1.    Under section 149 of the Equality Act 2010, the Mayor and GLA are subject to the public sector equality duty and must have due regard to the need to:

•    eliminate unlawful discrimination, harassment and victimisation and any conduct that is prohibited by or under the Equality Act
•    advance equality of opportunity between people who share a relevant protected characteristic and those who do not
•    foster good relations between people who share a relevant protected characteristic and those who do not.

3.2.    The “protected characteristics” are age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation and marriage/civil partnership status. The duty involves having appropriate regard to these matters as they apply in the circumstances, including having regard to the need to: 

•    remove or minimise any disadvantage suffered by those who share or is connected to a protected characteristic
•    take steps to meet the different needs of such people
•    encourage them to participate in public life or in any other activity where their participation is disproportionately low. 

This can involve treating people with a protected characteristic more favourably than those without one. 

3.3.    It is anticipated that all GLA Members will benefit equally from the additional benefits associated with LGPS membership. 

3.4.    It is not considered that an individual who shares any protected characteristic will be impacted disproportionately by the proposal. By admitting GLA Members to the LGPS, the GLA’s wider approach to the remuneration of its elected members will align more closely with that of its employees. Running two schemes in parallel, through to 2028, ensures no individual GLA Member is disadvantaged by the vesting-period requirements of the LGPS. 
 

4.1.    To reduce the risks associated with moving from one pension scheme to another, and to reduce complexity of the administration of both schemes until 2028, two principles are proposed:

•    existing GLA Members would not be allowed to join the GLA Members’ Pension Scheme after 16 July 2026
•    existing GLA Members who choose to move to the LGPS would not be allowed to rejoin the GLA Members’ Pension Scheme. 

Both principles are deemed appropriate and proportionate in the context of the options available to GLA Members. 

4.2.    To help GLA Members decide whether to move to the LGPS, and whether to transfer in their previous pensions, the GLA has provided briefing material. It has also organised a dedicated webinar covering the key information.

4.3.    Given the subject of the matter under consideration, the GLA Monitoring Officer has granted a dispensation to the Mayor and Assembly Members to make this decision. There are no conflicts of interest to declare for any GLA officer involved in the drafting or clearance of this decision form.
 

5.1.    The London Pensions Fund Authority has confirmed that the GLA’s LGPS employer contribution rate for 2026-27 to 2028-29 will be 10.3 per cent of pensionable pay. This is lower than the current employer contribution rate (12 per cent), under the Aviva pension scheme; therefore it is anticipated that there will be immediate modest savings. 

5.2.    Moving to a Defined Benefit pension scheme carries long-term liabilities that do not exist in a Defined Contribution pension scheme. However, given the relatively small number of additional members that would be added to the GLA’s liabilities, it is unlikely to bear a material additional cost to the GLA. 

5.3.    The costs of the scheme for Assembly Members will be met: 

•    by Members’ individual employee contributions 
•    from the existing budget and reserves held for employer contributions within the Assembly’s budget and balance sheet, which (as per the above) will be fixed at 10.3 per cent of pensionable pay. 

Pay and associated costs related to the Mayor form part of the budget for the Mayor’s Office directorate.

5.4.    This Decision proposes running the LGPS and the Aviva schemes in parallel. Each member can opt into one scheme, but not both; the Aviva scheme will cease in May 2028. The proposal to run two schemes in parallel, through to May 2028, reflects the fact that members of the LGPS are subject to a two-year vesting period. The monetary cost of running both schemes is likely to be minimal; and can be offset from the modest savings made from those opting to enter the LGPS scheme. 
 

6.1.    Under section 26 of the GLA Act 1999, the GLA may make such provision for the payment of pensions to, or in respect of, persons who have ceased to be the Mayor or an Assembly member, as the GLA may from time to time determine. 

6.2.    The GLA’s function of determining that pension provision is a function that is exercisable by the Mayor and the Assembly, acting jointly on behalf of the GLA. 

6.3.    The Determination made by the GLA must be published. 
 

7.1.    GLA Members will be able to opt in to the LGPS from 9 August 2026. The Local Pensions Partnership Administration (the GLA’s pension administrator) will hold the pension records. 

7.2.    Contributions to the GLA Members’ Pension Scheme will cease on 7 May 2028.