Friday, July 14, 2017

There is No PPF or Crown Promise for the LGPS Pension scheme which must be run in the interests of pensioners and not the employers

To be clear.

A Council (or administering authority) is responsible for the majority of any pension deficit but that if the fund does badly and the Council runs out of money (which due to austerity it has been widely predicted will happen to some authorities)

- who will pay the pensions of our staff and their dependents?

If a private sector pension scheme gets into trouble, there is the pension protection fund which will step in to save it.

There is no Pension Protection Fund for the LBN Staff Pension fund or any local authority fund

If a civil service pension scheme runs into trouble there is a "Crown Promise" by the Government to step in and pay pensions.

There is no "Crown Promise" for the LBN Staff Pension fund nor any Local Authority Pension. 

This was recently confirmed by QC Barrister advice to the National Pension Board.

By law Pensions schemes must be run in the interests of the beneficiaries and not the employer. 
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