- Conference
- 2016 National Retired Members Conference
- Date
- 3 June 2016
- Decision
- Carried
Since the implementation of the proposals of the 2011 Lord Hutton enquiry the significant changes to the Local Government Pension Scheme have produced a knock on effect that affects existing pensioners and those with deferred benefits as well as our current serving colleagues. Putting to one side the imposition of higher contributions and later retirement date for our serving colleagues the implications of a career average calculation rather than a final salary basis means that the future financing of the scheme is on an ‘equally shared basis’ with the pension being funded two thirds by the employer and one third by the members. If a fund is determined not to be self-financing the implications are either higher contributions by both employer and member or the reduction of benefits payable. Also under consideration (and of much greater concern to retired members) could be the annual inflation-linking of existing pension payments.
Independent Local Pensions Boards have been introduced which unlike the existing Local Pension Committees are not committees of the Local Authority and are made up of an equal number of employer and member representatives. The new bodies are tasked with the role of securing the effective and efficient governance and administration of the scheme and this includes how employers comply with written policies on discretionary practice i.e. flexible retirement and overseeing the process and operation of the Internal Disputes Resolution. Most Boards have one membership seat reserved for a retired member and therefore involvement in this revised strand of governance is essential.
Training is provided and expenses paid but the elected representatives must display the ability and capacity to carry out their role on the Board which is ultimately responsible to the Pensions Regulator and of course the members that they are elected to represent.
So now it is not wholly appropriate to take your LGPS pension and just forget about the governance. If you have not already done so, now is the time to be prepared to stand forward to represent your fellow pensioners.
Conference calls upon the National Retired Members Committee to liaise with the National Executive Council to ensure that this state of affairs is widely publicised so that the Local Pensions Boards are supported by membership representation (both retired and ‘live’) to ensure that the best interests of all members are served.