New local government pensions proposals released

From UNISON’s National Website http://www.unison.org.uk/asppresspack/pressrelease_view.asp?id=2713

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 

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.

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Whats happening with the negotiations on LGPS?

Check out  http://www.unison.org.uk/acrobat/5823.pdf to find out what is happening with your LG pension

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."

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.
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In need of help or advice about work problem

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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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Labour's views on public sector pay are a 'slap in the face'

UNISON condemns the Labour Party's suggestion that public service workers should accept more pay freezes and pay cuts as "a slap in the face".

Labour's misguided statement comes at a time when it is predicted that 700,000 jobs will be lost in the public sector by 2017, two thirds of whose workers are women.

"I've been a Labour party member for many years and this has come as a slap in the face" said Wendy Nichols, joint vice-chair of UNISON's Labour Link.

Ms Nichols, a Labour councillor in Selby and a member of the Labour party since 1984, added: "I remember canvassing for Labour at the age of nine with my parents. And this has really shocked me."

She was joined in her anger by Margaret Wilkinson, also joint vice-chair and a longtime member of the Labour Party, who commented: "Many hundreds of thousands of low-paid women working as carers, classroom assistants and in other local government jobs have already suffered two years of pay freeze - and none of us got the £250 that Osborne promised to help the lower paid.

"Now we have our own Labour leaders saying they would support even further pay freezes. Not only are UNISON members shocked by this, but so are Labour party members.

"The two Eds need to be out there arguing for fairness, not following in the tracks of the Tories. We will make sure the party leaders get the message loud and clear."

UNISON general secretary Dave Prentis said that in the past year, Labour has struggled to get its message across and show that there is an alternative to the coalition's savage cuts in public services.

"Our members need hope and a reason to vote Labour. These have been snatched away," he said.

"We were told by Ed Miliband to be patient, to prepare for the long haul, that their economic plans needed to be careful, cautious.

"We hoped that as the economy worsened, Labour's voice would get louder, more strident, more forceful, and that Ed Miliband would step up and speak out against the tearing apart of communities and families as they face insecurity and uncertainty.

"But at a time when our members needed him most, he panicked and ditched overnight a policy that challenged the coalition. Instead, he has decided to embrace a Tory pay policy that hits millions of public service workers, particularly low-paid women."

Accusing the Opposition leader of "breathtaking naivety", Mr Prentis added: "His comments will have unintended consequences. At a time when hard working families are struggling to make ends meet, the very party which they want to stand by them, has chosen instead to play cheap politics with their lives."

UNISON's relationship with Labour is governed by our democratically elected national affiliated political committee. They will meet to determine the best way to ensure that the Labour Party leadership properly reflects the views of UNISON members, the wider Labour Party membership and those who support Labour.