The Local Government Pension Scheme (LGPS) is a sustainable, good quality pension scheme that benefits from being funded and locally managed. It is valuable to employers and employees alike. Successive governments have failed to recognise the distinctiveness of the LGPS in setting policy, most notably in the proposal announced by the Chancellor in the last Comprehensive Spending Review (CSR) to impose an extra 3.2% contribution tax on scheme members, increasing scheme average member contributions from 6.6% to 9.8%. This tax does not benefit the scheme or scheme members or employers. This proposal is in addition to pension reductions caused by being indexed against the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI) and is in advance of expected benefit reform recommendations from the Hutton Review.
That Council agrees:
An increase in member contributions as proposed will lead to mass opt outs from the LGPS and that would be undesirable and damaging. The views expressed by the Local Government Association (LGA) in its letter to the Chancellor dated 16 February 2011 on this subject are also the views of this Council.
That Council resolves:
Council will write to the Chancellor of the Exchequer and the Chief Secretary to the Treasury and the Secretary of State for Local Government within the next month stating this Council’s support for the LGA letter referred to above and calling for government to rethink its proposed increases to LGPS member contributions. Council will work with Trade Unions to ensure employees are made aware of the proposals for the LGPS and encouraging them to support the Council’s representations to defend their pension scheme.
Minutes:
The Local Government Pension Scheme (LGPS) is a sustainable, good quality pension scheme that benefits from being funded and locally managed. It is valuable to employers and employees alike. Successive governments have failed to recognise the distinctiveness of the LGPS in setting policy, most notably in the proposal announced by the Chancellor in the last Comprehensive Spending Review (CSR) to impose an extra 3.2% contribution tax on scheme members, increasing scheme average member contributions from 6.6% to 9.8%. This tax does not benefit the scheme or scheme members or employers. This proposal is in addition to pension reductions caused by being indexed against the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI) and is in advance of expected benefit reform recommendations from the Hutton Review.
That Council agrees:
An increase in member contributions as proposed will lead to mass opt outs from the LGPS and that would be undesirable and damaging. The views expressed by the Local Government Association (LGA) in its letter to the Chancellor dated 16 February 2011 on this subject are also the views of this Council.
That Council resolves:
Council will write to the Chancellor of the Exchequer and the Chief Secretary to the Treasury and the Secretary of State for Local Government within the next month stating this Council’s support for the LGA letter referred to above and calling for government to rethink its proposed increases to LGPS member contributions. Council will work with Trade Unions to ensure employees are made aware of the proposals for the LGPS and encouraging them to support the Council’s representations to defend their pension scheme.
Councillor Reckless, supported by Councillor O’Brien, proposed an amendment that the motion be replaced with:
“That Council notes:
The Local Government Pension Scheme (LGPS) is a sustainable, good quality pension scheme that benefits from being funded and locally managed. The interim report by ex-Labour Cabinet Minister, Lord Hutton, led the Chancellor in the last Comprehensive Spending Review (CSR) to propose an extra 3.2% contribution tax on scheme members, increasing scheme average member contributions f5rom 6.6% to 9.8%. This should help ensure the LGPS’ long-term sustainability when combined with the move from final salary to career average pensions, which will protect lower paid staff relative to higher earners.
That Council resolves:
Council will write to the Chancellor of the Exchequer and the Chief Secretary to the Treasury and the Secretary of State for Local Government in support of the proposed changes to the LGPS in light of the need to restore the public finances to a sustainable position”.
On being put to the vote the amendment was carried and became the substantive motion.
On being put to the vote the substantive motion was carried and agreed.
Decision:
(a) This Council noted that:
The Local Government Pension Scheme (LGPS) is a sustainable, good quality pension scheme that benefits from being funded and locally managed. The interim report by ex-Labour Cabinet Minister, Lord Hutton, led the Chancellor in the last Comprehensive Spending Review (CSR) to propose an extra 3.2% contribution tax on scheme members, increasing scheme average member contributions from 6.6% to 9.8%. This should help ensure the LGPS’ long-term sustainability when combined with the move from final salary to career average pensions, which will protect lower paid staff relative to higher earners;
(b) This Council resolved to write to the Chancellor of the Exchequer and the Chief Secretary to the Treasury and the Secretary of State for Local Government in support of the proposed changes to the LGPS in light of the need to restore the public finances to a sustainable position