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LGPS 2014 - JOINT STATEMENT

Consultations result in overwhelming support for new LGPS proposals

Consultations undertaken by the Local Government Association (LGA), UNISON, GMB and Unite have overwhelmingly approved the proposals for a reformed Local Government Pension Scheme (LGPS) published at the end of May. The consultations took place between the beginning of June and the end of August and included individual ballots for union members and a process enabling scheme employers to both express support (or not) and make comments on the proposals.

The consultations resulted in the proposals being supported by:

*   93% of employers
*   90% of UNISON members
*   95% of GMB members
*   84% of Unite members.

The overwhelming majority of other unions with members in the LGPS have also accepted the proposals, including NAPO, UCATT, AEP and Prospect.

The employer and trade union votes taken together give a clear mandate to accept the proposals.

A statutory consultation process will now be undertaken by Government in order to implement these proposals. This process will also include proposals currently being finalised under workstream 2 of the LGPS 2014 project covering scheme governance and cost management.

Quotes
Sir Merrick Cockell – LGA Chairman said:

"Our approach throughout this process has been to reform the pension scheme so it is fair to our staff, affordable for council taxpayers and has a viable long-term future. The overwhelming level of support for these proposals is very encouraging, and demonstrates the commitment among employers in local government to a manageable scheme that gives staff a decent pension when they retire."

Heather Wakefield – UNISON National Secretary Local Government, Police and Justice Section said:

"These were tough negotiations, but with a focus on the majority of members who earn less than £21,000 a year, we have ensured that current LGPS members can afford to remain in the scheme and those who could not afford to do so to date can now join via a low cost option.

"This is vital for many of our members who have suffered a decline in earnings as a result of the coalition's pay freeze policies.

"Contributions are now on a fairer 'progressive' basis. We will continue to campaign with all of the union, through the TUC, against the proposals to increase the state retirement age."

Brian Strutton – GMB National Secretary for Public Services said:

"GMB members have spoken loud and clear. The new LGPS 2014 proposals represent a fair and balanced outcome which means the pensions scheme will remain affordable and sustainable. GMB members have recognised this as shown by the overwhelming vote in favour.

"There was great anger and frustration at the Government's original proposals for the LGPS which, frankly, would have seriously jeopardised the £150 billion worth of funds. That led to the strike last November which was followed by the Government agreeing to the renegotiating of the offer.

"Having reached this unique agreement the next stage is to develop better scheme governance to ensure value for money, performance improvement and cost stability going forward"

Peter Allenson – Unite National Officer for Local Government said:

"This is a positive step forward following the November strike and some genuine negotiations with local government employers which have also been signed off by the Government.

"Our members took strike action and as a result they got a better deal. However, the strike action was followed by constructive negotiations which we are pleased ended in an agreement which was acceptable to our members."

Notes to editors

The background to the LGPS 2014 project (which applies to the LGPS in England and Wales, but not Scotland or Northern Ireland) can be found on the LGPS website.

Read the news and updates on the LGPS
New LGPS proposals released

Author: LGA Media Office
Contact: Dale Atkinson, Local Government Association Media Office, Telephone: 020 7664 3333