Local government workers back final salary pension schemes

Union members staked their colours to the 'final salary' pensions mast, as negotiations over the future of the local government scheme drew to a close last month. In a final push, the unions lobbied MPs on 22 November, while councillors and employers were also wooed.

In a government consultation exercise over the summer, the big unions came down in favour of an improved final salary scheme. They rejected the "career average" (CARE) option, in which scheme members build up entitlement based on their salary in each year of membership, rather than their final salary. Members would, public services union UNISON warned, be exposed to more risk, as actual salaries might outstrip the re-valued average earnings used in the CARE scheme.

In a briefing to councillors, the union said the best of the four 'options' was the one known as Option B: "This would see the final salary scheme accumulation rate increase from the current 1/80 pension plus 3/80 lump sum to 1/60 pension with a right to choose how much of the package to take as a cash lump sum. This would be better for everyone and be in line with the teachers' and NHS 'new look' pensions".

But with the Local Government Association submitting a very different response, the unions were keen to ensure that the draft regulations (to be released as Labour Research went to press) reflect their preferences.

"Our members won't pay more for less," UNISON general secretary Dave Prentis told a packed lobby meeting in Westminster, and he warned the government to stop, look and listen: "Listen to our case for an affordable pension scheme that protects the future of 1.5 million people and their families."