8 December 2005
After intensive talks between the unions, employers and officials involved in the LGPS, the ODPM made a statement in Parliament (see attached statement regarding the removal of the 85 Year Rule.)
The hurdle of the supposed cost of revocation that the employers were claiming has been cleared without the need to increase employee contributions. Amicus has along with other Local Government Unions effectively rebutted the employers' excessive claims.
The statement from the ODPM signals the introduction of draft regulations to remove the Rule of 85 from October 2006 in light of John Prescott's legal advice that the rule will contravene age discrimination legislation that is due to be published early next year. The trade unions do not agree with his interpretation of the proposed legislation – particularly when the exact law is not yet known.
Over the next few weeks we will be in discussion with the other local government unions to discuss further strategy and Amicus will be responding to the consultation document.
John Allott, National Officer for Local Authorities said:
"We have achieved the objective of covering the cost of revocation without having to increase employee contributions. However, the removal of the 85 year rule without full protection for existing scheme members is unacceptable. All we have asked for is to be treated the same as other public sector workers who have had their existing pension rights protected.
It is a matter of fairness and consistency across the public sector"
The Local Government Trade Unions will be meeting on 15 December.
