Local Government Minister Phil Woolas yesterday made a hostile intervention which spiked talks between the unions and the employers, in which real progress was being made over proposals for the ‘new look’ LGPS.
Minutes before the employers were due to consider fresh proposals from the trade unions, Minister Phil Woolas made a Statement in Parliament, announcing a new pension scheme for England and Wales. Neither the employers or the unions had been warned that the statement would be made.
At a meeting on 14 October, Phil Woolas had urged the LGA and LGE to negotiate with the unions, in line with the April Joint Statement. He said that he would prefer us to reach a negotiated agreement, which could then be translated in draft Regulations for consultation.
The employers and the unions had written to Phil Woolas, explaining that significant progress had been made in the talks and earlier this week, Keith Sonnet, Deputy General Secretary, had asked him not to make a statement until the talks had been concluded next week. No reply was received.
The proposals, which will appear as draft Regulations around 30 November, appeared less than an hour before a planned meeting with the LGE and the LGA at which the progress we had made in recent discussions was to be reported by LGA and LGE officials to the Minister.
The Minster’s statement and the DCLG letter containing the proposals can be downloaded from DCLG website www.communities.gov.uk/lgps. Although the Statement contains some positive proposals, including retention of a final salary scheme based on a 1/60 accrual rate and some benefit improvements, they are unacceptable overall for the following reasons:
• The employee contribution rate is increased for the majority of scheme members from 6% to 7.5%
• The employer contribution rate is substantially reduced and effectively subsidised by the increased employee contribution rate
• The is no additional protection for existing scheme members to compensate for the loss of the 85 Rule, despite far better arrangements being agreed in Scotland
• There would be substantially reduced benefits for those forced to retire early on grounds of ill health
What happens next?
General Secretary Dave Prentis is calling on the Minister to allow the talks to continue to allow us to try to reach an agreement, despite the Statement to Parliament. The Service Group Liaison Committee will meet next week, followed by meetings of the Service Groups on 4 December. Unless the discussions are allowed to continue, an industrial action ballot looks inevitable.
Minutes before the employers were due to consider fresh proposals from the trade unions, Minister Phil Woolas made a Statement in Parliament, announcing a new pension scheme for England and Wales. Neither the employers or the unions had been warned that the statement would be made.
At a meeting on 14 October, Phil Woolas had urged the LGA and LGE to negotiate with the unions, in line with the April Joint Statement. He said that he would prefer us to reach a negotiated agreement, which could then be translated in draft Regulations for consultation.
The employers and the unions had written to Phil Woolas, explaining that significant progress had been made in the talks and earlier this week, Keith Sonnet, Deputy General Secretary, had asked him not to make a statement until the talks had been concluded next week. No reply was received.
The proposals, which will appear as draft Regulations around 30 November, appeared less than an hour before a planned meeting with the LGE and the LGA at which the progress we had made in recent discussions was to be reported by LGA and LGE officials to the Minister.
The Minster’s statement and the DCLG letter containing the proposals can be downloaded from DCLG website www.communities.gov.uk/lgps. Although the Statement contains some positive proposals, including retention of a final salary scheme based on a 1/60 accrual rate and some benefit improvements, they are unacceptable overall for the following reasons:
• The employee contribution rate is increased for the majority of scheme members from 6% to 7.5%
• The employer contribution rate is substantially reduced and effectively subsidised by the increased employee contribution rate
• The is no additional protection for existing scheme members to compensate for the loss of the 85 Rule, despite far better arrangements being agreed in Scotland
• There would be substantially reduced benefits for those forced to retire early on grounds of ill health
What happens next?
General Secretary Dave Prentis is calling on the Minister to allow the talks to continue to allow us to try to reach an agreement, despite the Statement to Parliament. The Service Group Liaison Committee will meet next week, followed by meetings of the Service Groups on 4 December. Unless the discussions are allowed to continue, an industrial action ballot looks inevitable.
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