Local government pension response takes shapes

by Chris Bartter

As we go to press, work is being completed on the UNISON submission to the consultation on the new Local Government Pension Scheme (LGPS).

The consultation period started in July, and there have been a series of meetings at branch and Scottish level, to involve activists and members of the LGPS in formulating the UNISON response.

There are a range of areas that where agreement between the main parties (employers, unions and government agency) prevails - eg. the LGPS should be a final salary scheme, the accrual rate should be 60ths, the death in service grant should increase to three years, partners' pensions should include cohabitees and the scheme should provide for flexible retirement opportunities.

However, there are a number of key issues where our view is likely to differ from the employers.

Dave Watson, Scottish Organiser - Policy said, "UNISON is likely to argue for graduated contributions to better reflect earnings and ability to pay. "Employers are concerned about a large number of tiers especially for staff earning below £18,000 a year.

"In addition UNISON wants an extra category of provision added to the ill-health retiral provision to cover people who have to retire on ill-health grounds, but who may have the prospect of gainful employment in a relatively short period."

We will also be likely to submit comments looking for considerably more input from members into the governance of the new scheme.

There is likely to be more debate on how people are to be transferred to the new scheme - with CoSLA wanting a transfer system that reflects transfer values (to account for the increased benefits in the new LGPS).

Unions prefer a more readily understood transfer scheme which banks benefits under the 80ths scheme, and starts anew under the 60ths one.

Following the responses further discussion will continue on the new scheme until draft regulations are laid in December. These will proceed through Parliament into next year, aiming for adoption in April 2008, and to take effect from April 2009.

UNISON members will be balloted on the final package when agreed - probably early next year.

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