Council employers express doubts over pension cuts

As local government unions prepared for strike action over pension changes last month, some employers expressed sympathy for the unions’ position and doubts on the government’s case for abolishing the “Rule of 85” began to surface.

The rule allows members whose age and service total 85 to retire at 60 with an unreduced pension.

The government, backed by the Scottish Executive, wants to change this but has only offered protection for existing members until 2013, in contrast with the policy agreed for other public sector groups.

Pat Watters, president of the Scottish local government employers’ organisation COSLA, said: “We value our staff in Scottish local government and fully understand their anxiety over this issue.” He called on the Scottish Executive to review its decision and allow all sides breathing space in an attempt to achieve an acceptable way forward.

Watters also said that union action was “understandable” on this occasion.

In England, Newcastle Council chief executive Ian Stratford told the local Evening Chronicle that settlements protecting scheme members in other public service schemes had “given the unions a powerful message” and the case for change was “not seen as balanced or credible”.

Public services union UNISON said many employers had told the union that they did not want the proposed changes. Nineteen police authorities, the Association of Chief Police Officers and the Police Superintendents‘ Association had all expressed disquiet about the two-tier pension arrangements that would apply in the police service in future, the union added.