Local Government Pensions Deal

22 Dec 2011

Local Government deal on pensions removes the threat of huge contribution rises which would have led to mass opt outs and jeopardised the LGPS funds. GMB members will be reassured that government has recognised the LGPS needs to be treated separately from the other public sector schemes.

GMB, the union for local government workers, commented on the new deal covering the Local Government Pensions Scheme (LGPS). See joint statement below. The seven page heads of agreement is attached at foot of this release as pdf on GMB website http://www.gmb.org.uk/ .

GMB also commented on the resolution of the confusion that had arisen on Tuesday 20th December which was resolved on 21st December.  See below after GMB first comment

Brian Strutton, GMB National Secretary for Public Services said “GMB members will be reassured that government has recognised the LGPS needs to be treated separately from the other public sector schemes. What this deal means is that there will be a full re-negotiation of the LGPS with changes to be introduced from 2014/15. This removes the threat of huge contribution rises which would have led to mass opt outs and jeopardised the LGPS funds. So it is good news that common sense has prevailed, it’s just a shame that it has taken 10 months and a strike to get there.”

The following statement was issued on December 21st 2011: “Discussions between the chief secretary to the treasury, Secretary of State for local government, the TUC, GMB, Unison and the LGA today agreed that the proposed way forward for reform of the LGPS as originally agreed has now been confirmed. The agreement means that the local government trade unions and the Local Government Association, with the Department for Communities and Local Government will commence detailed negotiations in the New Year. All those involved welcome the speedy clarification from ministers that has enabled this agreement to be taken forward.

Brian Strutton GMB national officer said “I’m pleased we have sorted out yesterday’s confusion. Both Danny Alexander and Eric Pickles have given me the assurances I sought and a new letter from Eric Pickles has been agreed, this means we have an agreement going forward into the new year.”