AVERAGE LOCAL GOVERNMENT PENSION SCHEME PAYMENT FOR A RETIRED WOMAN IS £1,600 A YEAR SAYS GMB

26 Aug 2009

Paul Kenny, GMB General Secretary said, “The average Local Government Pension Scheme payment for a retired woman is £1,600 a year. This is equivalent to a lunch bill for many of those passing judgement on public sector pensions. What is more is that local government workers’ pension savings are invested in UK businesses throughout the private sector, there couldn’t be a worse time to talk of taking a hatchet to the LGPS.

It is high time politicians started talking about how workers can fund their retirement not how to cut workplace pensions to the bone. The country needs reliable and secure pension schemes that will give those that contribute to them a reasonable income in old age.  The British taxpayer definitely does not want to foot the bill for state benefits that will shoot through the roof if politicians and the pensions industry wipe out every good quality pension scheme in the country.
Far from being gold plated and set in stone, all public sector schemes have been reformed significantly over the past few years.  While employer holidays from decades ago have left deficits on past service, for future service the Local Government Pension Scheme costs less that the average private sector defined benefit scheme. 

For all our futures we need to wise up and have a proper debate about pension saving in the UK, not cut everyone’s pension down to the minimum.”