English council employers threaten UK pensions

by Chris Bartter

After the successful defence of local government pensions and positive steps to reach agreement in the Public Sector Forum, it is disappointing to now be faced with outrageous proposals to change the pension scheme.

The move comes from the England Employers Organisation in the Tripartite Committee established by the Deputy Prime Minister. While these proposals only technically affect the pension scheme in England and Wales at this stage, and the Scottish employers have stated that they do not agree with some of these proposals, we are aware that the Scottish Public Pensions Agency has previously indicated that changes in Scotland should substantially follow what is agreed down south.

Joe Di Paola, Scottish Organiser, Bargaining said "It is important that we revitalise the campaign we put on hold after the success earlier this year. "Despite the huge solidarity form members then the employers down south want to reintroduce the draconian changes that were revoked - and then more!"

The employers proposals include:

• Removing the 'rule of 85'
• No transitional protection for existing scheme members
• Increasing the employees contribution by 1% on 1 April 2006 and 2007.
• An Increase in the minimum benefit age from 50 to 55.

UNISON and the other unions have rejected these proposals. The official reason from the employers is the cost of revoking the regulations. UNISON challenges their estimate of the cost and is pointing out that employers contributions were reduced by 1.5% this year and there is no evidence that the 'rule of 85' is discriminatory.

The LGPS is already the poor relation of public service pension schemes and to increase contributions and reduce benefits will only serve to worsen the position. Scotland's employers have also said they do not see the Rule of 85 as discriminatory, and of course there is no cost of revocation as no amendments to the Scottish scheme were made to be revoked.

Joe Di Paola, however, says this must not lead to complacency. "Whatever the employers believe, there will be huge pressure to ensure that the schemes North and South of the border are not hugely different.

"It is important that members in Scotland increase pressure on their MPs to deliver the same deal for local government staff as other public sector staff. We have produced a model letter to use to get support from their MP, and we are urging Scottish MPs to sign Early Day Motion no 787".

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