Council pensions not gold plated

Evidence that workers in the Local Government Pension Scheme (LGPS) get lower pensions than those in private sector final-salary schemes has been highlighted by the GMB general union which (along with other unions) is resisting damaging changes to public sector schemes.

The evidence came in a report by the High Pay Commission produced last month showing that private sector final salary pensions pay on average £5,860 compared with £4,119 under the LGPS.

GMB national secretary Brian Strutton said: “It proves what we have been saying for months, namely that government has no justification for raising contributions or reducing benefits in the local government pension scheme. To do so would put the £165 billion pension savings of 4.9 million people at risk”.

A coalition of unions backing the LGPS point out that it currently takes in over £4 billion a year more than it pays out. They warn that increasing member contributions, which effectively reduces costs to the employers, will cause many currently in the scheme to leave.