The following letter has been sent out by the LGA to all Local Authority Chief Executives this afternoon.
Although UNISON welcomes the commitment of the LGA to enter into negotiations on a way forward, at the time of writing a formal proposal has not been tabled with the TUC, UNISON or other involved trade unions, contrary to the employer’s statement. We are seeking urgent clarification from the LGA about the status of the document.
In light of the ongoing talks, a number of national UNISON meetings have been scheduled for next week in the event of us having an acceptable proposal to consult on. Also the National Joint Union Strike Team is scheduled to meet on Wednesday.
Lucille Thirlby
Senior National Officer
Local Government Service Group
Dear Chief Executive
Local Government Pension Scheme.
I hope it is helpful to bring you up-to-date on recent national developments concerning the Scheme. You will appreciate that this is a very fast-moving situation, but this is the position at the time of writing.
Last week the Trade Unions called staff out on strike over their demand to retain the 85 year rule. The Unions however are also aggrieved that they do not have protection for existing staff equal to that granted by the Government to other public sector workers. Whilst the LGA has sympathy with this perceived unfairness, we have to give first regard to the affordability and sustainability of a funded Scheme.
The Minister for Local Government laid an Order on 30 March, which brings the 85-year rule to an end by October 2006, with protection for existing staff who will be 60 by 2013. He called on both sides to begin talks, to start now ‘on a nothing ruled in, nothing ruled out basis to address the protection of existing Scheme members, the recycling of savings, and the development of a more equitable Scheme’.
Despite the Unions calling further industrial action, the LGA has responded positively to the Minister’s statement. It initiated informal soundings with Trade Union leaders, facilitated by the TUC.
As a result a special LGA Group Leaders meeting, also attended by the Chairman of the Human Resources Panel, took place on Wednesday 8 April. We decided to move our position significantly by agreeing to discuss enhanced protection, subject to affordability. A copy of our unanimously agreed statement is appended.
This has now been presented to Unison, the lead trade union, and the ODPM. The LGA stands ready to engage in meaningful discussions and negotiations on this basis and hopes that the Trade Unions will call off planned industrial action as soon as possible and engage positively with us.
We will keep you informed of significant developments. The Group Leaders next meet on 19 April.
[The LGA Chairman is writing in similar terms to your leader]. Please share this information with your staff as you would wish.
Yours sincerely,
John Ransford
Deputy Chief Executive
Local Government Pension Scheme – LGA proposal for developing a framework for a programme of discussions and negotiations
1. The statement by the Minister for Local Government on 30th March laying Parliamentary Orders, including the Order to abolish the Rule of 85 from October 2006, provides a framework for developing a new-look scheme. He said that “in the light of discussions held yesterday with the Trade Unions and Local Government Employers, we are calling on both sides to begin talks, to start now on a nothing rule in nothing ruled out basis, to address the protection of existing Scheme members, the recycling of savings, and the development of a more equitable Scheme”.
2. All participants are firmly committed to change in pension provision, now and in the future, being made by agreement as far as possible, respecting the role of the DPM as regulator.
3. This commitment to create a new-look scheme should encompass all issues raised by the participants within the context of the Parliamentary orders and related Ministerial statements. The scheme must be sustainable and affordable for employers and as a key element of the renumeration, recruitment and retention package for Local Government employees and those belonging to admitted bodies.
4. The following specific action points are emphasised by the participants to be addressed during this process:
• Work to resolve the outstanding differences in relevant actuarial assessments to be undertaken immediately and all emerging proposals to be assessed by professional advisers appointed by the participants.
• Up to 50% of the savings accruing from the abolition of the Rule of 85, and consideration of the savings from the revised commutation arrangements, to be made available to fund scheme improvements, including protection arrangements for existing staff, and creating a more equitable and affordable Scheme.
• Urgent negotiations to take place before the Parliamentary summer recess on developing a good quality, sustainable and affordable new-look LGPS going forward, fully equality proofed with greater choice and flexibility on when and how members move from employment to retirement and having regard to the respective contributions of employers and employees; incorporating discussions on affordable protection to existing staff, including full protection, taking account of appropriate actuarial and legal advice.
5. All participants are committed to concluding the first phase of these negotiations in order to report to the Tripartite Committee in June. The Minister said in his statement that “the Government stands prepared to introduce further amendments before the summer recess to update the regulations in the light of any agreed proposals which emerge from the talks between the Trade Unions and Local Government Employers”.
LGA Chairman, Group leaders and Chair of LGE Employers
Local Government Association
5 April 2006
For the UNISON response: click here
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