slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Future of the Local Government Pension Scheme PowerPoint Presentation
Download Presentation
Future of the Local Government Pension Scheme

Loading in 2 Seconds...

play fullscreen
1 / 23

Future of the Local Government Pension Scheme - PowerPoint PPT Presentation


  • 349 Views
  • Uploaded on

Future of the Local Government Pension Scheme. Secure - for now. But public service schemes under review New schemes coming in April 2008 Negotiations at critical stage High proportion of non joiners Public pension envy?.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

Future of the Local Government Pension Scheme


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
    Presentation Transcript

    1. Future of the Local Government Pension Scheme

    2. Secure - for now • But public service schemes under review • New schemes coming in April 2008 • Negotiations at critical stage • High proportion of non joiners • Public pension envy?

    3. Why did members strike over the Local Government Pension Scheme (LGPS) on 28 March • Thousands of members’ retirement plans are in jeopardy • LGPS treated unfairly compared to other public service schemes covered by the Public Service Forum Agreement • Should be no change to existing benefits without agreement

    4. What were the Public Service Forum agreed principles? • Existing scheme members should suffer no detriment in normal retirement age and benefits • New Schemes for new staff providing defined benefits, pensions continuing to go up in line with price inflation • Normal Retirement Age increased to 65 for new scheme – half the savings ploughed back for scheme improvements

    5. Why does Government not apply PSF deal to the LGPS? They say: • LGPS is ‘funded’ therefore real deficits caused by people living longer and past under-funding • 85 Rule breaches age discrimination Regulations

    6. The LGPS is no gold standard • Good average final salary scheme • But average pension in payment only £3,800 per annum. For women only £1,600 per annum • Minimum Income level for pension credit is currently £5,930 per annum for a single person • Large numbers of low paid members can’t afford to join

    7. Where are we now with the LGPS? England and Wales For those who will satisfy the Rule of 85: • The Rule will remain for existing members until the ‘New Scheme’ comes in April 2008 • Those who are 60 by 31 March 2016 will be protected on service up to that date • Those 60 between 1 April 2016 and 31 March 2020 will have the early retirement reduction tapered

    8. Where are we now with the LGPS? Scotland • The proposed protections are better than what is now law in England and Wales – those 60 by 31 March 2020 will be protected on service up to that date

    9. What are the next stages? • DCLG Discussion Paper on New Scheme for England and Wales - Consulting to 29 September Option A • Is the existing final salary scheme i.e. pension builds up at the rate of 1/80th (1.25%) of pensionable pay for each day of pensionable service • Plus a lump sum of three times the pension (i.e. 3/80ths)

    10. What are the next stages? • Option B • As requested by the TU side this option is included • It is a final salary option where benefits build up at the rate of 1/60th (1.66%) of pensionable pay • There is no additional lump sum but members have the option to exchange some of their pension for cash. • A 1/60th scheme has been proposed for the new Teachers and NHS Pension Schemes

    11. What are the next stages? Option C1 • Is a career average option where the benefits build up at the rate of 1.85% of averaged pay (in the paper it is expressed as a % but for comparison purposes it is roughly equivalent to a 1/54th) • Each year would be revalued in line with prices i.e. the Retail Prices Index (RPI) • There is no additional lump sum but members have the option to exchange some of their pension for cash

    12. What are the next stages? Option C2 • Is a career average option where the benefits build up at the rate of 1.65% of averaged pay (in the paper it is expressed as a % but for comparison purposes it is roughly equivalent to a 1/61th) • Each year would be revalued in line with RPI plus 1.5% • There is no additional lump sum but members have the option to exchange some of their pension for cash

    13. What are the next stages? Option D • Based on either C1 or C2 but would allow the member to opt for a final salary option if the member pays significantly higher contributions

    14. Negotiations Continue (1) TU Side initial position • Good defined benefit scheme • Preferred option 1/60th final salary scheme • End discrimination against unmarried partners • Improve death in service cover

    15. Negotiations Continue (2) TU Side initial position • Support variable employee contributions to be fairer to the low paid • Increase member representation • Extend Admitted Body Status on outsourcing • Equality proofed

    16. What is happening with other public service negotiations • Final Salary schemes for new members may be the preferred choice for most of the new schemes • Most - but not all - schemes appear to be heading for two tier provision • Discussions on future risk sharing taking place in some schemes • Issues around future transfers between schemes not really started • Trend to allow options for members to take a larger part of their benefits as cash

    17. Meeting Employers and Government • Negotiations start again on 2 August • Will continue as long as necessary • We will press for more protection and a good new scheme for all members – no two-tier • GAD figures will be carefully examined

    18. Judicial Review • Hearing will be 18 and 19 September • We say that full protection is lawful and affordable • If we win – we expect full protection • If we lose – we will carry on negotiating

    19. More Industrial Action? • We want full protection • Or a combination of protection and scheme improvements which amount to it • If final proposals not acceptable we will re-ballot for industrial action

    20. What can you do? • Recruit new members • Get membership records up to date • Circulate “Campaign News” and briefings • Keep an eye on the website • Most important! Discuss “new look” proposals with members

    21. JOIN US0845 345 845 www.unison.org.uk/pensions