Urgent, urgent update on LGPS 2014 England and Wales (Council Pension scheme)

This is very important. I will say this only once! If you have been in the Local Government Pension Scheme (LGPS, Council pensions scheme, superann etc) and for whatever reason you have stopped contributing into the scheme BUT you still work for that employer and can rejoin - then do so before April or else.

do it now, don't delay, don't forget about it, don't put it off. Rejoin the scheme. You already know it makes sense but if you don't rejoin before the new scheme in April you could lose big time (see below).

 From UNISON's National Pension Officer Glyn Jenkins
"The Regulations changing the LGPS will come into force with effect from 1 April 2014 . PLEASE DO WHAT YOU CAN TO MAKE COLLEAGUES AWARE OF THE MESSAGE BELOW AS SOON AS POSSIBLE

1. Below is an important update (that was on the UNISON website News section), covering where we are on the Transitional Regulations that will set out the protections on benefits earned before April

2. Last chance reminder that anyone who has currently opted out of the LGPS MUST rejoin immediately if they want to ensure the earnings link protection on any final salary benefits they have earned up to April 2014 ( there may be some protection for those who opt back in within 5 years of opting out). If the cost of the contributions is the problem then they should be reminded that from April there is an option to pay half their normal contribution rate for half the pension. They should approach their employer pension department and ensure that the forms to rejoin has been returned and received before the end of this month. If they are not actively contributing to the scheme then any benefits they earned before they opted out that fall outside the proposed five year window protection to opt back in, will go up in line with prices (currently Consumer Prices Index) not earnings

3. Anyone thinking of paying Additional Voluntary Contributions to maximise tax free lump sum payment when they retire so they don’t have to exchange so much of their pension for cash at the relatively poor exchange rate of only £12 cash £1 pension should elect to start paying the contributions BEFORE April 2014. If members elect to pay AVC’s after April then when they retire they are likely only to be able to take part of their AVC fund as a cash sum ( currently 25% of the value) and the remainder they will have to buy extra pension at whatever the annuity rates will be in the future from a pension provider like an insurance company. Members ,especially those near retirement , should consider paying AVC’s if they can afford it and approach their employer pensions department for details of the AVC arrangement operated by their employer/LGPS fund. They can as an alternative buy extra pension in the LGPS.

LGPS transitional regulations update

The government regulations covering transitional arrangements for the Local Government Pension Scheme are still delayed, because the government has yet to decide whether councillors should continue to be allowed to join the LGPS, following its consultation last year.

UNISON head of pensions Glyn Jenkins, who sits on the group that is checking the draft regulations, commented: "There are no plans to reduce the protections that have been agreed, which are in the current draft."

As drafted, this would mean the 'rule of 85' protection will go over into LGPS 2014 unchanged from what it is now. So any part of a person's service that is currently covered by the rule of 85 would not be reduced for early payment if she or he decides to retire at 60, unless they have not completed enough service by that time to satisfy the rule.

Those who voluntarily decide to retire between the age of 55 and 60 with full or part protection for the rule of 85, would have an early retirement reduction unless the employer agreed to pay to remove it.

There is still fine tuning to be done about the level of the reduction in such cases.

UNISON believes it has succeeded in arguing that the reduction will only count back from age 60, not 65, but this will be confirmed when the regulations are laid.

Also as drafted, the current definition of final pay and the protections on pay will remain the same for all service up to April 2014. The underpinning protection for those who were within 10 years of their normal retirement age at April 2012 is also in the current draft.

"UNISON is pushing for the transitional regulations as drafted to be laid as soon as possible, to remove uncertainty," said Mr Jenkins.

"We are concerned that, because of the delay in bringing the transitional regulations into law, some members are considering leaving the scheme or even resigning their jobs - under the false impression that the protections will not be implemented and the equally false impression that leaving the scheme would somehow protect their past service rights in the LGPS.

"In fact, all those who want the final earnings protection on their LGPS service to April 2014, must make sure they are contributing to the LGPS when the regulations change in April."

The Scottish LGPS and Northern Ireland LGPS are separate.

Boris and his Pension Merger Plan to Rescue GB Plc

On Monday the FT rather oddly announced that the new Chair of the London Pension Fund Authority (LPFA), Edmund Truell, with the support of Mayor Boris Johnson, is to merge all 34 London Staff Council funds "into a single scheme and channel more investment into the capital’s infrastructure projects".  The Evening Standard also waded in on Tuesday in a similar vein here

The fact that neither Boris nor the LPFA has any legal powers to do this was not mentioned.

Now it makes perfect sense to look into merger in order to see if it will save money and stop Councils and pension scheme members being ripped off by vested interests. Equally, no one would be more happier than me if we could use pension funds to kick start the economy and say build more homes.

But there is a problem. Some 4.6 million Brits have a local government pension entitlement. Its primary purpose is to pay an income in retirement and not to be a substitute for inadequate investment in infrastructure by Government.

Some people also think that the LPFA is looking at merger due to its own internal financial predicament as a mature scheme with many pensioners claiming their money but relatively few active members still paying into the scheme.

There has also been claims of scaremongering. The Local Government Pension Scheme as a whole has assets of £160 billion. It is not broke. Some schemes do indeed have difficulties but in many cases this is due to outdated and irrelevant accounting measures which price scheme liabilities on the current abnormal 200 year low in gilt yields.

So far there has also been no mention either that in the new LGPS 2014 scheme members (and their "widows & orphans") will face the future costs of poor investment performance.  Under European and UK law pension funds must be run in the interests of beneficiaries, then the case for or against merger or for investment in any particular asset class, must first and foremost take into account their interests. Not short term political ambitions for a flat in Number 10.

There are a number of obvious risks. What if merged Council pension funds invest in building homes for rent and there is a property price crash? What if investment in alternative electricity supply is undermined by a change in future Government policy? In other countries pension funds that invest in infrastructure get significant Government financial support or guarantees.

There is also the issue of "why only the LGPS?". While it may seem rather strange that there are 101 separate LGPS schemes worth £160 billion, there are about 53,000 private Pensions schemes. The vast majority of whom are tiny. How well managed are they? This is also important to GB Plc since the Private sector defined benefit schemes alone have £1.1 trillion in investments. Surely it makes sense to look at merging private sector schemes as well?

The Secretary of State, Eric Pickles, who the FT claims is a supporter of Council Pensions merger, may have the legal power to force merger.But unless this is done sensitively and by putting the interests of beneficiaries first, then it is likely to end in tears. Which if the supporters of merger are right, would indeed be bad news not only for the LGPS but also for GB Plc.

Social Housing Pension Scheme guide and Seminar

UNISON and the other unions may have achieved success with the Local Government & NHS pensions but the battle continues in the Community and private sector.

UNISON pensions experts have issued a guide to protecting the Social Housing Pension Fund (Pensions Trust).  There is likely to be a major industrial dispute over plans by some employers to close their SHPS schemes.  This is totally unnecessary.

It is also running a seminar on November 15 at the UNISON centre in London.

All branches with Community members should have been invited to send delegates. It is imperative that they attend.

Outsourcing & Austerity: Civil Society & the Coalition Government"

Today I was a breakout session speaker at this conference in Congress House. I spoke alongside senior employment rights officer at the TUC, Hannah Reed. Our brief was "What is happening to the voluntary sector workforce".

I will post another time on the wider conference (which was very well organised). Below is my crib sheet for my session. I believe that notes taken of the whole conference will be published on line. Will update when get details.

"Overview
Austerity & Outsourcing affects not only clients & users but also staff. There has been a “Race to the Gutter”. Cuts in SP funding and removal of ring fencing. Deliberately breaking and undermining of TUPE.

Means that many staff have had pay cut by up to 30%, increase in working week, cutting of leave, threat of redundancy and job insecurity.

Growth of agency workers/temporary contracts; bank/0 hour’s staff; tax cheating bogus self employment, greater use of “volunteers”.

Redundancies and recruitment freezes means increased case loads & greater workplace demands which leads to stress and the cutting of corners in providing services. 

We all know what happens when organisations serving vulnerable groups start cutting corners to cut costs.

There is a huge reputational risk to organisations and a potential discrediting of whole sector. Some organisations want to employ only part time workers not full time so they can claim state benefit top ups!

Wider content is the attack on employment protection for workers by the Coalition. The doubling of the time needed before you can claim unfair dismissal, charging upfront fees of over £1000 for ET, withdrawal of health and safety measures etc.

Need to understand why workers pay and conditions are relevant to the wider community, due to the local economic impact and that on the quality of service. Many experienced and trained care workers can get more money packing shelves in Tesco’s.

What we need to do?
All Unions want genuine Partnership with employers and Community groups/representative organisations. Discussions around sectorial agreements on quality, safeguarding and price. We want to work with like minded people who will say enough is enough – we cannot go below this level and provide decent services. Not just Trade union provider interest but we are citizens as well who rely on these services.

 

Workers and community activists can work together (both got inside knowledge, local campaigns).  Top and bottom approach.

Unions recognise that we have to get our act together as well. Never organised properly in the sector in past. UNISON now has a specific section for all Community & Voluntary. I am one of two elected NEC members. Setting up local branches specifically for C&V trade union members.

 

Trade union recognition. Need to get members to join. Cannot understand why some "reputable" organisations refuse to recognise trade unions? A blockage to working together. What have they got to hide?

Campaign/lobby together (openly or otherwise) the Government, Councils and Devolved nations. Especially Labour & progressive "one nation" elements (discuss). The unions don't yet punch their weight in our sector.

 

Finally

While there is a lot we can do change policies and occasional defeat the Coalition. (such as water down Health Bill and new look pensions LGPS 2014). There has to be bigger political issue. Educate our members and public that there is a credible alternative economic model to Austerity.  We need a plan B.

Increasing the pay of the low paid is one way of increasing demand and growth. While huge amounts of taxpayers’ money is being used not to pay off debt but subsidise poverty wages. 

 

We have a job of work to do with our members and public on this vital subject.

Lab12: Workplace pension fringe

This fringe by NAPF/Smith Institute was on Monday. Gregg McClymont MP, pension shadow minister is speaking. Monday (1 October) was of course the day that Workplace Pensions began. So it was pension wise, a special and even historic day.

The Labour position outlined by Gregg is encouraging. He wants full transparency on charges. He wants to encourage scale. There are nearly 50k pension schemes in the UK. Pensions should not be a "cottage industry".  Policy now is for member Trustees for all pension funds (including those run by insurance companies) and changes in fiduciary duties.

NAPF CEO Joanne Segars spoke next about how it is interesting that pensions are being reported for the first time in a largely positive way. By Christmas 500k extra people will be saving for their pensions. Their research is that 2/3rd of people will not opt out. She agreed with Gregg about scale and also the need to have a better alignment of interests between savers and pension providers.

 

My question was that one of the reasons why there has been a low take up of pensions so far is that people are not stupid, they realise that the products currently offered are often pretty rubbish and that they do not want to take all the defined contribution (DC) investment risk.  I wondered if the new look Local Government Pension Scheme 2014 could not be a model for a rebirth of sustainable and affordable defined benefit schemes in the private sector?

 

Gregg thought the idea was interesting while Joanne reminded everyone that many defined benefit schemes were in serious difficulties.

 

This was the first of four pension fringes I attended this conference. One was under Chatham House rules so I can't post on it which is a great shame but I will do the others (eventually).

TUC 2012: The State of the Unions

I'm in Brighton for the Trades Union Congress 2012 as an UNISON delegate. Conference starts at 4pm. Stacks of reports, motions and policy papers to wade my way through.

While on the crowded train here I tapped some strictly personal thoughts into my BlackBerry about "the state we're in".

First the bad news. Not a good start last week to hear that total trade union membership has dropped under 6 million for the first time. A long way from the 1970's 12 million.

Recession and austerity will mean that membership may (will) decline further. The public sector is shrinking and many new jobs in the private sector are so far either in non unionised sectors or self employment (real or bogus).

There are various attempts to even further restrict trade union rights such as threats to get rid of facility time and demands for minimum turnout in strike ballots.

I'm trying desperately to think of any good news. Nope, can't think of any. "Good" is not the right word but there is still hope and there is still the potential ability to turn negatives into positives.

Lets not forget that we are still by any measure the largest mass membership organisation in the UK.

The need for unions are as compelling now as they have ever been. Power at work is stacked in favour of the employer. The simple fact of the matter is that you cannot trust the government, the law or your employer (no matter how well meaning) to protect you at work, only your trade union.  Without a collective counter balance at work even the "best" employer will have nothing to stop them going amok from time to time.

Ironically it is this horrible and cruel government which could be our unlikely recruiting sergeant. There has always been is a strange belief that unions are not really needed because if the boss misbehaved you can take them to the cleaners at the courts. This has always been rubbish but the wholesale assault and ripping up by the Tory led Government on workers legal rights and protection must surely be acting as a wake up call? Are you going to be able to pay a upfront court fee of £1500 to try and get justice if you are unfairly thrown out of work?

The unions also need to start thinking out of the box about making us appear attractive to workers in small companies and the self employed. Many members of my family are in this position. They don't need representation or collective bargaining but they are worried about what will happen if they fall ill or how much money will they get when they retire. Trade unions in other countries provided income protection if sick why can't we? Why can't UK unions provide pensions? Why not offer a national Defined Benefit pension scheme modelled on the new look Local Government Pension Scheme 2014?

Finally, it seems likely that this government will last until 2015. So we have less than 3 years to use our influence in the Labour Party to help it become the next Government on the back of policies that will really benefit working people. Money alone is not enough. We need to get active within the Party and use our relatively privileged position within the Party to argue for change.

In the meanwhile let's do our bit educating our members and the public about the alternatives to this  governments rotten economic policies and get a mass turnout on October 20th as part of a wider Labour movement renaissance. Hopefully next years state of the unions will indeed have some "good news". 

"UCATT Members Vote to Accept Local Government Pension Offer"

Ucatt members (Union of Construction, Allied Trades & Technicians) have also voted overwhelmingly to accept the new local government pensions scheme by 79%.

They join GMB members who voted 95% in favour, UNISON 90% in favour and Unite 84% in favour.

Seems pretty clear result. Now we need to be encouraging people to join the new scheme and using it as a model for schemes in the private sector.  Hat tip Unionreps e-newsletter.

GMB vote 95% in favour of LGPS: Further Misery for Miserablists

GMB member's of the Local Government Pension Scheme have voted by 95% in a secret postal ballot to support the new look scheme.

"Brian Strutton, GMB Public Services National Secretary, said “GMB members have spoken loud and clear.  The new LGPS 2014 proposals represent a fair and balanced outcome which means the pension scheme will remain affordable and sustainable; GMB members have recognised this as shown by the overwhelming vote in favour".

The UNISON ballot is ongoing. The ballot helpline close's tomorrow and the vote ends on 24th August.  Of course the UNISON miserablists are being even more miserable than usual at the GMB result. Does the GMB have miserablists or is it just an affliction that UNISON suffers from?

LGPS 2014 - Ballot helpline now open

"Dear colleague

 You should have received your ballot paper for the UNISON ballot on the new proposals for the Local Government Pension Scheme (LGPS).

If not, the ballot helpline is now open: if you have not received your ballot paper, or need a replacement, call the helpline straight away on 0845 355 0845.

Remember, you can vote by post or online, and the ballot closes on 24 August at 10am.

Your service group executive - the committee of lay members representing you - recommends that you vote Yes to these proposals, under which most members will be better off.

There is a lot of information about how the proposals might affect you on the Local Government Pension Scheme page of UNISON's website at unison.org.uk/pensions/lgps.asp.

The ballot closes on 24 August. The ballot helpline is 0845 355 0845 and it will be open until 10am on 21 August.

Yours sincerely"

Vote ACCEPT to protect your LGPS pension

"Landlords hit with extra £30m in pension costs"

"Inside Housing" magazine today reports that the Pensions Trust has told 700 employers who are part of the Social Housing Pension Fund (SHPS) that they are facing a rise in

pension contributions of £30 million.

The Pension Trust runs schemes for "over 2,400 charitable, social, educational, voluntary and not-for-profit organisations". I imagine that all their defined benefit scheme employers will be receiving similar messages.

I posted the following comments in response on the Inside Housing website:-  

"What employers should be saying to the Pensions Trust is why should they pay more when this so called "deficit" is a completely meaningless figure based on a discredited and outdated accounting standard? Which even the Government pensions minister describes as a "nightmare" and has promised to change?

Why isn't the Pension trust looking into the alternatives to simply raising contributions and threatening the long term sustainability of the scheme?

Why aren't they following the lessons learnt from the new Local Government Pension Scheme 2014 on how to keep contributions down but still offer a first class defined benefit scheme?

John Gray
Branch Secretary Greater London UNISON Housing Association Branch".

Miserablist loses the plot (while having a strop)

Check out this great article in UNISONactive about the hypocrisy of the miserablists, who are actively trying to destroy the new local government pension scheme. Putting aside for the moment that the new LGPS 2014 is a victory for the union (and our members - in particular low paid women workers), the chief miserablist is having one of his "know it all" strops and attacking anyone who dares to disagree with him. 

While at the same time ignoring basic principles of trade unionism by declaring UDI from collective decisions made at conference and by elected lay members.

UNISON Community e-news: Voting YES in LGPS ballot is "vital"

Community e-news

July 2012

UNISON’s e-newsletter for the Community service group

Vote “Yes” in the LGPS ballot

The leadership of UNISON’s Community service group is urging members to vote “YES” to accept the proposals for a new Local Government Pension Scheme.

Service Group chair Kevin Jackson said: “This is a vital vote for all our members in housing associations and charities.

·         If you are in the LGPS, then it’s a good deal, especially for part-time workers.

·         If you are not in the LGPS, then keeping a high quality scheme for public service workers will help put the brakes on other employers who want to ‘dumb down’ pension schemes.

·         If you are being TUPE-transferred then the “Fair Deal” for pensions is being beefed up to give you more protection too.

“Not all members are in the LGPS.  But we have to ballot everyone in employers which have some members in the LGPS.  We are also working hard to protect the Social Housing Pension Scheme and other pension schemes.  A high turnout in the ballot will send a message of strength to the government. 

Make sure you vote!

The ballot runs from 31 July to 24 August, and members can vote by post or online.  There is more information on www.unison.org.uk/pensions/lgps.asp.

Pensions: Fight to keep schemes! and “auto-enrolment”

Members in the Social Housing Pension Scheme (Pensions Trust) need to be aware that their employers have been sent letters about the deficits in their pensions schemes which is causing some employers to panic and start talking of closing the scheme or massive increase in contributions.  There has also been some outrageous scaremongering by some financial “advisors” to schemes.  UNISON is arranging an urgent meeting with the Pensions Trusts.  In the meanwhile if your employers starts talking of any changes to your pension scheme please contact your branch and UNISON’s pensions unit immediately and ask your employer to send copies of what is being proposed.

Remember – the current pension so-called “deficits” are valued in a completely discredited and inaccurate manner which even the current Pensions minster has recognised is wrong and needlessly “killing” good pensions schemes. Remember closing a pension scheme does not get rid of any deficit - in fact it can make things worse.

Finally, for everyone, “auto-rolling” for pension schemes is starting from the end of this year. Nearly all employees who are currently not in a pension scheme will be automatically enrolled into the employer’s scheme or a state scheme. Now this may be “good news” for those not in a scheme but we are concerned about some employers who currently have decently funded defined contribution schemes (“final salary” or “career average” schemes) may be tempted to cut existing employer contributions, since they are worried about an increase in the pension bill from more people being in it.  We have to fight this as well. Pensions are expensive.  Employers’ have to realise that unless they want their staff to retire in poverty they have fund pensions properly.

Pensions are obviously not boring nor are they as complicated as you think. We need to have at least one UNISON Pension Champion (or contact) in every employer.  If you are interested in being a “Pension Champion” let us know and we will sort out some training for you on the role in the very near future.

Contact: pensionsm@unison.co.uk

(top two stories on pensions in this months Community e-news. Check out rest of news here on
campaigns and research against cuts and austerity; pay deals and employer reports from around the country; activity in regions; and a new chair for your service group executive).

Vote YES to Protect Your Pension: LGPS 2014 Ballot

From tomorrow (31 July 2012) UNISON members will be able to vote on the new look Local Government Pension Scheme 2014.

My advice is to ignore the miserablists who are urging rejection for reasons I cannot even begin to understand never mind explain.  This (LGPS 2014) is a good deal.

Since the Union cannot identify who is in the scheme or not, all those who work for employers who have membership of the LGPS will be balloted. If you are currently in the pension scheme you need to vote YES to secure it. If you are not currently in the scheme I would also recommend you vote YES since you may be able to join it later.

Voting YES is a "no-brainer" in my view. This is a good deal that should secure the scheme for the future. Check out the latest advice below from the UNISON pension advisors:-

"It’s time to have your say! Use your vote on the new pensions proposals.

• Ballot will be held 31 July – 24 August.
• Ballot helpline (10-21 August) 0845 355 0845

Among the improvements to the LGPS negotiated by Unison are:

• No overall contribution increase – 90% of members will pay the same or lower contributions than now – you will only pay more if you earn over £43,001 a year.
• A career average scheme which uses all your pensionable pay to calculate your pension, increase in line with the Consumer Prices Index (CPI)
• An improved 1/49th accrual rate, which means your pension builds up faster each year
• Pensionable pay will include non contractual overtime and additional hours worked by part-time and term-time wokrers – so more of your earnings will count towards your pension
• Most part time workers will pay less for their pension as contributions for part timers will be based on actual pensionable earnings from 2014, not the full time equivalent as they are now
• A new 50/50 option means that after April 2014 you can choose to pay half the contribution to receive half the pension in those years while keeping full survivor benefit and ill-health pension protection. You can opt back into the full contribution for full pension rate at any time.
• If you are transferred to a private or voluntrary sector employer, you will still have the right to stay in the LGPS.

Current scheme members’ pensions benefits for service before 1 April 2014 are protected and will still be calculated on final pensionable salary on leaving service or retirement. The current normal pension age of 65 will continue to apply to this part of your pension. The existing Rule of 85 protections will still apply and members will not have their pension reduced if they are made redundant after the age of 55 regardless of normal pension age.

If you want to find out more about how these changes will affect you then go to http://www.unison.org.uk/pensions/lgps.asp"

"Four out of five service groups say vote 'yes' in the LGPS ballot"

Excellent news! The elected lay Service Group Executives of UNISON have voted overwhelmingly to endorse the new look Local Government Pension Scheme (LGPS 2014).

"Members covered by Local Government Pension Scheme in England and Wales are being urged to vote yes to a new LGPS 2014 scheme when they are balloted this month.

In all around 660,000 members in five UNISON service groups will be covered by the ballot, including:

• 580,000 members in local government;
• 40,000 in police and justice;
• 19,000 in higher education;
• 17,000 in community;
• 6,000 in the water, environment and transport service group.

The local government, police and justice, community and WET service groups are all recommending that members vote 'yes' in the ballot. The higher education service group is recommending that members vote 'no'.

Heather Wakefield, national secretary for local government and police and justice, who led the negotiations for UNISON says: "After months of talks, led by UNISON, we now want you to have your say on the proposals for the new Local Government Pension Scheme (LGPS 2014).

"UNISON is recommending that members vote yes in the ballot, because we believe that these proposals give most LGPS members - and especially women and low paid workers, who are the majority of members - a better pension deal.

"It is vital that members make their voice heard.

"Please tell your members to look out for their ballot paper which is being sent direct to the home addresses of all UNISON members who are in the LGPS or eligible to join."

The LGPS Scrutiny Group has decided on a joint ballot. It will run from 31 July to 24 August, and members can vote by post or online.

In Scotland, pensions are a devolved matter for the Scottish government and the Scottish LGPS is a separate scheme, with no clear proposals to change it. The LGPS in Northern Ireland is covered by different regulations and proposals are still under discussion".

Letter to Chair of Community SGE on LGPS 2014 proposals

Dear Kevin

Please present my apologies to today’s Community Service Group Executive (SGE) meeting on the proposed new Local Government Pension Scheme 2014.

I have a long standing family commitment.  I would however like to make a report to the SGE on what I believe to be the merits of the LGPS 2014 (England and Wales) proposals.

I will declare an interest. I am a member of the LGPS and have been for around 18 years. Three other members of my immediate family are also members of the LGPS and we are all dependent on the scheme for financial security in our old age. The scheme needs to be made sustainable to ensure this.

My branch carried out the consultative process of members about the proposed new scheme. Out of the 1400 members consulted the response was poor but all members who did respond were in favour of the new look 2014 scheme and no-one was in favour of taking industrial action against it. There is no appetite whatsoever in my branch, my service group nor (I understand) my region for any strike action on this issue. 

Why would there be? Since we should be celebrating LGPS 2014 as a significant victory for the Union and the labour movement! Brought about by collective campaigning, lobbying, mobilising and effective industrial action.

In many ways LGPS 2014 is actually an improvement for our members. Pension build up (accrual) will increase for all but 90% will pay the same or less. The existing final salary pension scheme discriminates against low paid women workers in favour of highly paid senior managers and Chief Executives. This is just wrong. Most members will do better under LGPS 2014 than 2008. Not only low paid women but nearly all part time workers and those who rely on non contractual bonuses and overtime to live on.  The 50/50 option will be a godsend to hard pressed members who due to cuts and pay freezes feel forced to leave the scheme.

In our Service Group (and others) the 2014 protection and extension of “Fair Deal” is absolutely crucial. Members being TUPE transferred will not have to accept 2nd class pensions schemes and will still be able to keep their LGPS pension if transferred again (and again). This requirement will also scare off the more blatant and obvious quick buck profiteers who don’t want to take on the responsibilities of a decent pensions scheme.  It will remain a world class guaranteed defined benefit scheme.

It’s a no brainer in my view. Let us support the LGPS 2014 in the forthcoming ballot and make this affordable and sustainable scheme a bench mark for all pensions for all workers. 

(Oh, and please forgive the miserablists. In the future they will be citing the success of the LGPS as an example of what you can achieve by industrial action)

Regards

John Gray
UNISON National Executive Council Member for Community & Voluntary sector.

UPDATE: LGPS 2014 endorsed overwhelmingly by SGE's see here

LGPS 2014 ballot - Vote YES to protect your future (& ignore the miserablists)

From UNISON eFocus today. There will be a ballot on the new proposed Local Government Pension Scheme 2014.

UNISON members who work for my employer and in my branch have voted overwhelmingly in favour of accepting the deal. This will keep a world class guaranteed pensions scheme for all and stop the discrimination of low paid women in favour of highly paid senior management and Chief Executives.

The ballot will start on 31 July and last until 24 August. You can also vote on-line.

While there are some who have genuine reservations about the proposal, there is also a miserablist opposition who are simply mischief making and doing all they can to distort and undermine the new scheme.

Through our arguments, campaigning and collective action we have defended the LGPS and retained a world class guaranteed defined benefit pension scheme. 

Some people simply don't know how to quit when they are ahead!

"Pensions, Pensions and more Pensions"

(This is an article I wrote last week for my Branch Stewards newsletter).

"Let’s face it. Many members probably consider Pensions to be a pretty boring issue and something that they would prefer to put off thinking about too much until another day (or preferably never). Well, whether you like it or not, in the coming months, all UNISON members and in fact nearly all employees will have to wake up and start thinking about pensions. 

For those of us in the Local Government Pension Scheme there is an ongoing consultation process at the moment by UNISON on a new look scheme. LGPS 2014 agreed last month with the unions, LGA employers and the Government. You will be balloted on the scheme at the end of the month. Have a look at what is being proposed on the UNISON website http://www.unison.org.uk/pensions/lgps.asp

While members in the Social Housing Pension Scheme (Pensions Trust) will need to be aware that their employers have been sent letters about the deficits in their pension schemes which is causing some employers to panic and start talking of closing the scheme or massive increase in contributions. There has also been some outrageous scaremongering by some financial “advisors” to schemes. UNISON is arranging an urgent meeting with the Pensions Trust. In the meanwhile if your employers start talking of any changes to your pension scheme please contact the branch immediately and ask your employer to send us copies of what is being proposed.

Remember – the current pension so-called “deficits” are valued in a completely discredited and inaccurate manner which even the current Pensions minster has recognised is wrong and needlessly “killing” good pensions schemes. Remember closing a pension scheme does not get rid of any deficit - in fact it can make things worse.

Finally, for those of you who are not in the LGPS or SHPS please be aware that “auto-rolling” is kicking in at the end of this year. Nearly all employees who are currently not in a pension scheme will be automatically enrolled into the employer’s scheme or a state scheme.

Now this is “good news” for those not in a scheme but what we are concerned about is that some employers who currently have decently funded defined contribution schemes (also known as DC, Group personal pensions, Group Stakeholders, money purchase etc) may be tempted to cut existing employer contributions, since they are worried about an increase in the pension bill from more people being in it.

We have to fight this as well. Pensions are expensive. Employer’s have to realise that unless they want their staff to retire in poverty they have to fund pensions properly.

Pensions are obviously not boring nor are they as complicated as you think. We need to have at least one UNISON Pension Champion (or rep) in every employer. If you are interested in being a “Pension Champion” let the branch office know and we will sort out some training for you on the role in the very near future".

John Gray
Branch secretary

Goodbye and thanks Keith: Hello and welcome Frances

On Wednesday evening after the NEC meetings I went to a reception to mark the retirement of UNISON Deputy General Secretary Keith Sonnet. Keith has served the Labour Movement for 40 years and I think we all wish him well in the retirement. Even though I doubt very much we have seen the last of him.

I had a later meeting that I couldn't get out of, so I was only able to have a brief chat and handshake. I don't know Keith that well but it was really nice that he remembered that I had helped (in a very small way) during the Local Government Pension Scheme (LGPS) negotiations in 2008. We also discussed the new LGPS 2014 scheme and the incredibily good deal that UNISON had negotiated for members.

Coincidentally this week Frances O'Grady was appointed as General Secretary of the British Trade Union Congress. She happens to be the first female GS of the TUC which is I think an important landmark occasion in trade union history. I have seen Frances speak and promote progressive labour politics and really welcome her election.

More Key Facts about the LGPS 2014 (and Too Hot Ta Trot)

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More key facts from UNISON about the the new proposed Local Government Pension scheme (LGPS 2014).

• 90% of members willpay the same or less contributions as now

All pensionable service before 1 April 2014will retain a Normal Pension Age of 65

• Most part-time workers and those with actual pensionable earnings between £15,801 and £21,000 will pay less in LGPS 2014
• Over 55% of local government workers work part-time


Only those earning over £43,001 will pay more


They make up just 4% of LGPS members
• 95.6% members earn less than £43,000 - the point at which contributions increase


The LGPS 2014 will for many members deliver a better pension than LGPS 2008, especially for those with less than 20 – 25 years of membership
• But the average length of membership in the scheme is just 7 years, so most members will do better in LGPS 2014

• From 1 April 2014 the Normal Pension Age (NPA) will be at least 65 and will then increase in line with the State Pension Age – which is set to rise to 68 between 2044 and 2046.
• The existing Rule of 85 protections will remain. Members aged 55 or over at 1 April 2012 will be protected by an underpin, which ensures that those people will be no worse off as a result of these changes. Under the proposals there are no plans to remove the pension protection for those made redundant from age 55

• Those who have to work longer will get a bigger pension because they will be paying contributions – and benefitting from employer contributions for longer
• Because all earnings will be pensionable – including non-contractual overtime and additional hours for part-time workers – members will have bigger pensions than now
• Most UNISON members not in the LGPS give cost and low pay as the reason. The "50/50 option" will help them to join

I note that the blogging Miserabilist in Chief, Jon of the Rogers (failed ultra left candidate for London regional convener and General Secretary) has been having a pop at me over this post. Now of course he misrepresents what I have said (I do accept that some non trots do think we could have got a better deal - amazing but true) but since he also makes a series of blatant untruths about the impact of CPI, survivor benefits, the stability of the LGPS, accrual etc etc I would hope by now that very few people paid any attention to his whining and whinging.

He again attacks our staff which is unacceptable especially since as a NEC member he is suppose to be their employer. He also shows his ignorance of the difference between a guaranteed public sector pension scheme and a private sector scheme.

So desperate are they to continue with their calls for general strikes and student union toytown revolutionary politics they want to destroy a perfectly good pension scheme.

The bottom line is he and the other Miserablists support the continuation of a discriminative pension scheme which penalises low paid women workers and benefits senior management and Chief Executive Officers. Nuf said.  (Hat tip Mel for Youtube video)