Employers and unions back changes to Local Government Pension Scheme

Unions and employers have given their support to proposed reforms to the Local Government Pension Scheme, it has been announced.

Consultations held between June and the end of August saw the proposals backed by 90% of UNISON members, 95% of GMB members and 84% of Unite members.

Other unions with members in the LGPS – including NAPO, UCATT, AEP and Prospect – have also come out in favour of the changes.

The vast majority of employers (93%) meanwhile said they would support the reforms.

A statement released by the Local Government Association and various of the unions said the votes of unions and employers taken together provided a “clear mandate” to accept the proposals.

The Government’s original proposals for the LGPS led to a strike in November 2011.

Sir Merrick Cockell, chairman of the LGA, said: “Our approach throughout this process has been to reform the pension scheme so it is fair to our staff, affordable for council taxpayers and has a viable long-term future.

“The overwhelming level of support for these proposals is very encouraging, and demonstrates the commitment amongst employers in local government to a manageable scheme that gives staff a decent pension when they retire.”

Heather Wakefield, UNISON’s National Secretary Local Government, Police and Justice Section, said the negotiations had been tough.

“With a focus on the majority of members who earn less than £21,000 a year, we have ensured that current LGPS members can afford to remain in the scheme and those who could not afford to do so to date can now join via a low cost option,” she said.

"This is vital for many of our members who have suffered a decline in earnings as a result of the coalition's pay freeze policies. Contributions are now on a fairer 'progressive' basis. We will continue to campaign with all of the unions, through the TUC, against the proposals to increase the state retirement age."

The Government will now go through a statutory consultation process in order to implement these proposals. This process will also include proposals currently being finalised under workstream 2 of the LGPS 2014 project covering scheme governance and cost management.