31.08.12
Pension reform support from local government
Local government employers have backed proposed changes to the local government pension scheme, following support for the proposals from unions earlier in August.
Support from employers was recorded at 93%.
The proposals main changes include a shift to pensions based on career average salaries and the exclusion of low paid workers from any increase in contribution rates.
In November, public sector staff went on strike against the initial proposals for changes to pensions.
LGA chairman Sir Merrick Cockell said: “Our approach throughout this process has been to reform the pension scheme so it is fair to our staff, affordable for council taxpayers and has a viable long-term future.
“The overwhelming level of support for these proposals is very encouraging, and demonstrates the commitment among employers in local government to a manageable scheme that gives staff a decent pension when they retire.”
Heather Wakefield, Unison national secretary for the local government, police and justice section, said: “These were tough negotiations, but with a focus on the majority of members who earn less than £21,000 a year, we have ensured that current LGPS members can afford to remain in the scheme and those who could not afford to do so to date can now join via a low cost option.
“This is vital for many of our members who have suffered a decline in earnings as a result of the coalition's pay freeze policies. Contributions are now on a fairer 'progressive' basis. We will continue to campaign with all of the union, through the TUC, against the proposals to increase the state retirement age.”
The Department for Communities and Local Government will begin a formal consultation in September before drawing up new regulations for the pension scheme.
Tell us what you think – have your say below, or email us directly at [email protected]
Image c. Andy O’Donnell