UNITE: Trade unions submit response to hutton pension commission

UNITE: Trade unions submit response to hutton pension commission

UNITE: Trade unions submit response to hutton pension commission

Today (14 December) the three main trade unions for local government: Unison, GMB and Unite, submitted their collective submission to Lord Hutton’s Independent Public Service Pensions Commission.

The joint submission focuses exclusively on the Local Government Pension Scheme. Despite being the largest pension scheme in the UK with four million members and £150billion in assets, the LGPS has been marginalised in the public sector pension reform debate.

. The LGPS does not contribute to the structural deficit targeted by the Treasury yet in October the Chancellor announced a 3% increase in member contributions to the scheme.

. Failure to protect the low paid would make the scheme unaffordable to the vast majority of members yet focusing the contribution hike on the rest will lead to unacceptably large increases – either option results in the very real danger of mass withdrawal from the scheme.

. GMB, UNISON and UNITE, the main unions representing scheme members, are deeply concerned that the introduction of this pension tax will make saving for retirement through the LGPS unaffordable for many existing and future members leaving many more retirees reliant on welfare.

The Unions’ submission highlights the very real danger that Hutton’s report outlining long term reforms to public sector pensions will be meaningless if members can no longer afford to participate in the schemes.

GMB National Secretary Brian Strutton said: “The danger is that the cost-saving reforms already in the pipeline for the LGPS look like being derailed by what can only be described as a pension tax of 3% levied indiscriminately by the government on council workers. This would have the effect of causing mass withdrawals from the scheme.”

UNISON Head of Local Government Heather Wakefield said: “The LGPS is a fair, funded and financially viable scheme which should be recognised as such. Most of its members are the lowest paid in the public sector, many part-time women workers on poverty pay. The proposed increase in contributions is unnecessary and could drive the low paid out of the scheme into retirement poverty. We urge Lord Hutton and the Government to think again and recognise the value of the scheme in keeping skilled and experienced workers in public services.”

UNITE National Secretary Peter Allenson said: “By levying a tax in this way on the LGPS the Government must realise that their actions will make the scheme unsustainable however the increase is implemented. I believe that Unite members will be so enraged that they will be calling for industrial action ballots. The Government should realise that this could be the final straw for many local council workers who are already enduring job losses and pay cuts.”

ENDS