The government has failed to listen to more than 70,000 signatories to a UNISON-backed parliamentary petition calling for it to be written into UK law that it is up to council pension funds to decide where they invest their cash, says UNISON today (Wednesday).
The petition on the parliamentary website urges the government to amend UK law with a European directive that says only the 89 individual funds in the Local Government Pension Scheme (LGPS) can decide where to invest the current and future pensions of five million retired and existing town hall staff.
While the government has acknowledged that local authorities need to invest in the best interests of current and future pensioners in its response, it has stopped short of changing the law to reflect this, says UNISON.
This ignores the advice of both the Law Commission and the England/Wales LGPS Scheme Advisory Board, says UNISON.
UNISON general secretary Dave Prentis said: “Ministers have failed to address the key point of the parliamentary petition, which wants it written into law that council pension funds, not the government, should decide where LGPS funds are invested in the best interests of scheme members.
“It’s up to council pension funds to decide where to get the best return on their investments. Council pension funds must be able to make their own decisions, not be told where to put their cash by ministers.
“We await the publication of new investment regulations, and hope that the government will amend the law so that council pension funds know it is down to them where to invest their cash.”
Notes to editors:
– The government plans to create British wealth funds of £25bn to replace the current 89 local government pension funds, giving them the ability to invest in infrastructure projects.
– UNISON is not opposed to the creation of these new funds but is concerned that ministers intend to take powers to direct how funds invest scheme members’ money, a move that the union believes would be unlawful.
– UNISON has argued that the LGPS should invest in line with European law, just like other pension funds, and should not be singled out for special intervention.
– The England/Wales LGPS Scheme Advisory Board, the Law Commission and UNISON have asked the government to apply the investment regulations applicable to all other pension funds in the UK and the European Union – EU Directive 41/2003 Institutions for Occupational Retirement Provision (IORP).
– The text of the parliamentary petition is available here. As of 9 May, over 72,000 people had signed the petition.
– The government’s response to the petition is available here.
Media contacts:
Liz Chinchen T: 0207 121 5463 M: 07778 158175 E: l.chinchen@unison.co.uk
Alan Weaver T: 0207 121 5555 M: 07939 143310 E: a.weaver@unison.co.uk