A survey released today by the New Policy Institute says the Government
would be worse off by £2 billion every year if the Local Government Pension
Scheme (LGPS) did not exist Ð that is twice as much as the scheme pays out.
The findings come as UNISON and nine other unions fight to make the
Government and the Local Government Association see sense over their
proposed changes to the 85 Rule, which currently enables LGPS members to
retire at 60 with a full pension if their service and age add up to 85.
UNISON General Secretary Dave Prentis said the survey results saw through
the costs of the Scheme that have been claimed by the Government: ÒLess
than 3p in the pound goes towards making sure council workers receive a
pension in retirement Ð and those same workers pay 6p in the pound to save
for their pensions.
ÒWeÕre not in fat cat pension land here. The average LGPS pension for women
is £31 a week. Over half of the LGPS members work part time, most are
women, and all have been doing exactly what the Government told them to
do Ð saving for their retirement so they arenÕt wholly dependent on the State.
ÒAnyone working in public services knows that you donÕt go into the job for
the big bucks. There are no fat bonuses or perks, in fact not much financial
reward for a lifetime of dedication. However, the one thing that workers could
rely on was their pension. They paid in their 6% year in year out knowing that
when they retired their pension would be waiting.
ÒNow those councils who took pension holidays in the eighties and nineties
are trying to hide their financial mismanagement by forcing some of the most
poorly paid people in the country to cough up the difference.
ÒIn a recent UNISON survey of all local councils, Kent had the biggest deficit Ð
because it took the biggest pension holidays Ð and now itÕs looking for an
easy way out. But frankly even Sir Sandy Bruce-Lockhart, Tory leader of the
LGA and recent leader of Kent County Council, admits that a mere 3% of his
councilÕs income goes to providing a pension for his workforce.
ÒDonÕt blame the workers who did the right thing and then expect to sell
them down the river. Look for a sensible and practical solution that protects
the rights of LGPS members now Ð and into the future.Ó
ends
Notes for editors:
* 73% of LGPS members are women
* Nearly 60% of them work part-time
* Women’s average LGPS pension is just £31 a week. As a comparison, Sir
David Henshaw, Chief Executive of Liverpool City Council, took early
retirement recently as so he could scoop a £340,000 payoff and avoid a
£200,000 tax bill on his pension.
* 75% of all LGPS pensions are under £96 a week
