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Siu Index
March 2006 No.59
Local Government Pension Scheme under attack
Vote yes to fight for pensions

by John Stevenson

As we go to print, ballot papers are going out from UNISON and other trade unions to public service workers across Scotland calling for action to defeat plans to cut their pension rights.

The fight is on against plans to delete the 'Rule of 85' which allows pension members to retire on full pension at 60, or apply for this if over 50, if their age and years of service add up to 85 or more.

The scheme covers local government, police staff and many other services. The Minister for Finance and Public Service Reform, Tom McCabe, has angered members by following the Westminster government in planning to amend the Local Government Pension Scheme (LGPS) regulations, arguing he has legal advice that the Rule of 85 would contravene the European Age Discrimination Directive.

"This goes against the legal advice taken by UNISON and CoSLA on the directive and the yet to be published potential legislation", said Joe Di Paola, UNISON's Scottish Organiser (Bargaining).

It also conflicts with the public statements of the EU's spokeswoman on employment, social affairs and equal opportunities, Katherina Von Schnurbein. Tom McCabe has seen the UNISON and CoSLA legal advice and

Joe challenged him on the government's advice. "If the government is so sure of its advice that they are prepared to reject two contrary opinions, why are they frightened to show it to us?"

Joe urged everyone to work hard for a YES vote in the ballot. "We must keep the pressure up. There is still time for the government to change its mind but we will only win if we show them we are united in fighting for our pensions", he said.

UNISON General Secretary, Dave Prentis, said, "This dispute is the biggest issue UNISON has faced for decades. It affects the rights of one million of our members who have paid 6% of their salaries into their pension scheme for decades to save for their retirement and are now being told that the deal is off."

Jane Carolan, one of Scotland's National Executive members said, "Our members have signed up to a pension scheme under one set of terms and conditions. They had planned their life around these and then changes were being brought in by the back door.

"Our members will not pay for employers who took contribution holidays to subsidise the poll tax."

TUC general secretary Brendan Barber attacked the "luxury pensions" negotiated by senior executives who then "criticised lowly paid public sector workers for expecting long-standing pension commitments to be honoured."

According to a TUC study, directors at Britain's 100 biggest companies had amassed pensions that would pay an average £167,000 a year compared with UNISON figures showing just £3,800 for an average public service worker.

In 80 per cent of cases, executives could retire with a full pension at 60. "They should stop lecturing the rest of us on how we should get smaller pensions from a higher retirement age," Mr Barber told the Guardian.

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