LGPS
How the LGPS works for employers
A guaranteed, index-linked, final salary pension scheme is a valuable recruitment and retention tool. Though salaries in the public sector may tend to be lower than in the private sector, a report by the Audit Commission revealed that it is the whole package on offer, including a guaranteed pension, that attracts staff to the public sector:
'...few people in our survey said that pay influenced their choice of job. Instead our discussions revealed that people see pay as one part of a bigger reward package that includes pensions, bonus schemes, annual leave entitlement...'
Source: Audit Commission (2002) Recruitment and retention - a public service workforce for the twenty-first century, Audit Commission.
The Government Spending Review 2002 reported that non-pay benefits are as important as pay to public sector workers. As final salary schemes in the private sector are becoming increasingly rare, qualified and knowledgeable people are opting for the security of a job with a guaranteed pension, such as that provided by the Lothian Pension Fund.
The Audit Commission estimates the average direct cost of recruiting a member of staff is £3,456, while new staff do not become fully effective until they have been in post for a year. Offering membership of the Lothian Pension Fund to your employees can help to ensure that experienced staff stay with your organisation and hence cut down on the expenses of recruitment.
