Friday 1 June 2012

LGPS 2014 - Negotiations completed: time to have your say


UNISON are pleased to tell you that after months of tough negotiations, the proposals for the LGPS from 2014 have been signed off by ministers for consultation.
UNISON will now start briefing regions, branches and members to let you know exactly what is being proposed from 2014, so that you can have your say.
The other LGPS unions and the Local Government Association will do the same.
You can find a UNISON leaflet and detailed factsheets about every aspect of LGPS 2014 proposals on the pensions section of the UNISON website here.
You will see that there is no change until 2014, 90% of members will pay the same contributions as now and some will pay less.
  • Part-time workers' contributions will be based on actual pay, not full-time equivalent earnings.
  • The scheme is a career average (revalued earnings), or Care, scheme with a 1/49 accrual rate and revaluations indexed to CPI inflation.
  • The normal pension age will be 65 as now, linked to the state pension age.
  • Anyone transferred to an outside contractor under TUPE will have the right to join the LGPS.
  • There is also robust protection for existing members. Find out more in the factsheets.
  • We will be holding meeting soon, please visit this web site regular to find when and where
UNISON will be consulting you about the proposals in a postal ballot. 

Thursday 31 May 2012

New local government pensions proposals released




The Local Government Association (LGA) and trade unions have today announced the outcome of their negotiations on new LGPS proposals (for England and Wales) to take effect from 1st April 2014.

These proposals will now be communicated to scheme members, employers, funds and other scheme interests. Unions will consult their members over these proposals and the LGA will consult employers. The government has confirmed that a favourable outcome of our consultations will enable them to move directly to a statutory consultation later in the Autumn to implement these proposals.

The main provisions of the proposed LGPS 2014 are:

1 A Career Average Revalued Earnings (CARE) scheme using CPI as the revaluation factor (the current scheme is a final salary scheme).

2 The accrual rate would be 1/49th (the current scheme is 1/60th).

3 There would be no normal scheme pension age, instead each member’s Normal Pension Age (NPA) would be their State Pension Age (the current scheme has an NPA of 65).

4 Average member contributions to the scheme would be 6.5% (same as the current scheme) with the rate determined on actual pay (the current scheme determines part-time contribution rates on full time equivalent pay). While there would be no change to average member contributions, the lowest paid would pay the same or less and the highest paid would pay higher contributions on a more progressive scale after tax relief.

5 Members who have already or are considering opting out of the scheme could instead elect to pay half contributions for half the pension, while still retaining the full value of other benefits. This is known as the 50/50 option (the current scheme has no such flexible option).

6 For current scheme members, benefits for service prior to 1st April are protected, including remaining ‘Rule of 85’ protection. Protected past service continues to be based on final salary and current NPA.

7 Where scheme members are outsourced they will be able to stay in the scheme on first and subsequent transfers (currently this is a choice for the new employer).

All other terms remain as in the current scheme. Future scheme costs will be monitored and controlled to ensure stability and affordability of the LGPS. Further details on cost management and scheme governance will be released once the ongoing discussions in the next part of the LGPS 2014 project are complete.

Heather Wakefield, UNISON National Secretary Local Government, Police and Justice Section said:

“The negotiations over LGPS 2014 have been long and tough and have taken place in a demanding political and economic climate. The process has shown that UNISON, the LGA and the other local government unions can work productively together in the best interests of LGPS members and potential members.

LGPS 2014 is a sustainable, defined benefit scheme, which is designed to protect existing members and be affordable for the low paid and part-time workers who are its majority. Under exacting circumstances, we have achieved the best possible outcome”


Tony Jones Regional Manager UNISON South East 

Friday 6 April 2012

LGPS would you use a 'low cost' option?

The team involved in negotiating over the 'new' Local Government Pension Scheme (LGPS) from 2014 has been considering whether to propose a 'low cost option' as part of the new scheme. 

This would enable members to opt for 50% contributions - and 50% benefits - for future service. 

The option would probably apply for up to a maximum of three years, during periods of financial hardship or reduced pay and might also help those members not in the scheme to join for a short period before entering the full scheme. 

At the end of that period, members could either opt out or transfer to the main LGPS. We also want to encourage as many non-LGPS members as possible to join.


Monday 20 February 2012

UNISON joins High Court appeal over pensions

UNISON, the UK's largest union, will today(20/02/2012) join a group of unions in an appeal to the High Court over which measure of inflation is used to calculate annual pension increases.

In his June 2010 budget, George Osborne announced, without consultation, that the government would use the consumer price index (CPI) instead of the retail price index (RPI).

When the change comes into effect in April 2012 the value of public sector pensions will fall by around 15% because CPI is around 1.2% lower on average than RPI.

This is the latest stage in the unions' legal challenge, launched in October 2011. The unions case is that the switch is not allowed under social security legislation and that it goes back on assurances given by successive governments that the RPI inflation would be used when determining pension increases.

Dave Prentis, UNISON general secretary, said:

"The decision to switch to using the CPI instead is a cynical move to pay down the deficit. This move could cost pensioners thousands. They deserve better. RPI is a much fairer reflection of the costs that retired people face - because, unlike CPI, it includes housing costs.

"Pensioners now, and in the future are being unfairly targeted to pay down a deficit they did nothing to cause. Meanwhile, it's still bonuses for the bankers. This government may try to claim that we are all in this together - but pensioners will not be fooled."

Tuesday 14 February 2012

Pensions dispute – frequently asked questions

If you are unsure about what's happening to public sector pensions you should find the answer in UNISON's FAQ document.
click to view answers

Wednesday 8 February 2012

In need of help or advice about work problem

For help and advice at work please contact your local UNISON steward or Health and Safety rep, list of names and numbers available on home page, we are here to help.

If you don't know who your local UNISON rep is, get in touch with UNISONdirect on 0845 355 0845, and UNISONdirect will provide you with the relevant information and help you to make contact with your local rep.







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