Scottish Labour Party Conference
Overwhelming Labour Vote wins review commitment from Minister.
Passed: Contemporary Composite 1
(Embracing Contemporary Resolutions 2, 3 and 4)
Conference notes with concern the Scottish Executive announcement
on the 17th January 2006 to abolish the rule of 85
for members of the Local Government Pensions Scheme (LGPS) in
Scotland.
Conference recognises that the proposed changes will have a
detrimental impact on many working people in a wide range of
occupations in Scotland who support vital public services, often
on low wages. This includes workers in local government, the
environment agency, police support, cleaning and waste companies,
voluntary sector, bus companies, higher education and others.
Conference notes:
- That this decision means that LGPS members are denied the
same rights and protections as members of other public sector
pension schemes which have agreed to allow retirement at the
age of 60 on a full pension.
- That the framework pensions agreement negotiated last Autumn
by Trade and Industry Secretary Alan Johnston and the public
sector trade unions which allows the people currently employed
within many public services to contribute to be able to retire
at 60. These discussions were a consequence of the agreement
reached at the national (UK) policy forum in Warwick 2004
that "any proposed changes to the public sector pension
scheme are subject of detailed consultation with the relevant
trade unions with a view to agreeing changes that are both
fair in their impact on public sector workers and based on
firm evidence and sound analysis". The Trade Unions have
welcomed the sensible framework agreement which is affordable,
honours promises made to staff and allows hard working public
sector workers to retire with dignity.
- Recent comments made by EU Commissioners on this issue
indicating that changes to the Rule of 85 would not necessarily
be a requirement under EU Legislation.
- Previous assurances made to COSLA and the relevant trade
unions to retain the Rule of 85 for members of the LGPS in
Scotland.
- The reaction from Tories, Liberal Democrats and many in
the media, who have united to condemn the agreement. Liberal
Democrat Pensions Spokesman David Laws described it as "neither
sensible nor affordable". Sixteen business leaders who
wrote to The Times condemning the agreement were subsequently
found to have personal pension plans allowing them to retire
at 60 on a pension 26 times the average received by a public
service worker.
- Members of the LGPS contribute to the scheme and want to
ensure that there is a viable and sustainable future for it.
- That the financial standing of Scotland's Local Government
Schemes is significantly healthier than schemes elsewhere
in the UK and therefore calls for a distinctive approach.
Conference calls on the Scottish Executive to review its legal
advice regarding the 85 Rule and work with Trade Unions and
COSLA to find a negotiated settlement.
