The Reform UK party has said it that it may remove employees’ membership of the Local Government Pension Scheme (LGPS), in local authorities which it now controls. They have also made a number of unfounded claims intended to undermine the LGPS.
The purpose of this briefing is to reassure members in these 10 councils that employers simply cannot stop new staff joining the LGPS, or remove LGPS membership for existing staff, and to give branches and members clear arguments you can use in rebutting arguments that Reform-led councils may use in their
attempts to undermine the LGPS.
Can local authorities remove LGPS membership?
The LGPS Regulations set out that Local Authority staff must be offered membership of the LGPS. This can only be changed if the Secretary of State amends national regulations after consultation.
It is possible that there will be attempts to try and persuade members to leave the LGPS.
UNISON will remain vigilant and oppose any attempt to attack scheme members.
Initial response to Reform’s attacks on the LGPS
Reform seem to be blaming the LGPS Pension Funds for councils going bust, and they say a quarter of council tax goes on pensions. They have referred to over generous defined benefit pension schemes.
If you are presented with such arguments, branches can point out that If one looks at the proportion of revenue that goes on employer contributions to the LGPS compared to the total value of all money that is received by the council, the proportion that goes on pension contributions is nearer 8% than 25%.
The average LGPS pension is currently around £5,370 a year. When added to the full state pension, this is just above adequacy levels. The truth is that for the many low paid this is an adequate pension. It is a myth that it is gold plated.
The rise of low value high risk defined contribution schemes in the private sector means that many workers are now heading for inadequate income in retirement.
A political party should be planning to help those with inadequate pension expectation, not attack those who are contributing to an adequate pension scheme like the LGPS.
The LGPS is affordable
The LGPS is now more affordable. At the 2016 valuation the cost of the scheme benefits went down, so many employers are now benefitting from employer contribution reductions.
UNISON is cautious about employers reducing their
contributions, but it is certainly not the case that the scheme is unaffordable.
Stay in touch
UNISON members, especially in the 10 councils controlled by Reform, should look out for any attempts to attack LGPS membership locally, and report any concerns you may have to your local UNISON branch.