27 September 2005
Amicus National Officer for Local Government John Allott has today written to all Local Authority Shop Stewards calling on them to consult with members to fight back and lead a campaign against the proposed cuts in benefits to the scheme, after employers in local government last week announced they wanted to reduce benefits and increase employee contributions.
The changes would apply to all members in the local government pension scheme.
The employers propose to:
- Remove the 85 Rule from 1 April 2006. They say this is necessary under the Age Discrimination legislation
- Offer NO protection to existing members of the scheme
- Increase employee contributions by 1% from 1 April 2006 and 2007 and review the scheme again in 2008
- Increase the age at which benefits can be taken from 50 to 55 from 1 April 2006, four years ahead of the date necessary under the 2004 Finance Act
They also want negotiations to be concluded by mid October so that any changes can be reflected in the November local government settlement. This would be an impossible timetable for trade unions to consult with members in a pension scheme covering more than two million workers.
Parallel talks going on via the TUC with secretary of state for trade and industry Alan Johnson seem likely to result in very different proposals for other public sector pension schemes.
John Allott Amicus National Officer for Local Authorities said "Local Authority workers are being treated less favourable than other public sector employees and are facing cuts to their scheme before any other public sector pension schemes. We expect Local Authority workers to be treated equally with members of other public sector schemes and we call for meaningful negotiations to take place."
Further talks will take place on 7 October 2005.
