Archive for November 16, 2011

Public sector pension separation

November 16, 2011

Is this a Civil Service or LGPS pig?

We haven’t written about the Local Government Pension Scheme for a while but since we last took a stab at joining the intelligent debate about it the Government and the Unions have been doing their best to do the opposite and thwart intelligent debate.

We made a quick note about this last week in our round up post and were pleased to see a very smart reply from Will who said:

I also think that as a LGPS member that it is problematic lashing ourselves to the mast of pensions campaigns of Civil Servants and Teachers. The public do not know that our scheme is funded and I’m afraid we will go down with ship on this one.

I’m also concerned that there might be a determination amongst some in the unions and their political supporters to give the Government a bloody nose on this motivated by matters other than the pensions issue. I think Unison members should be wary of being used as a tool for political ends.

This will be a short post so we’ll stick with the first paragraph of Will’s response (I’m assuming that we’ll have plenty of chances to discuss this further over the coming weeks).

Without being too parochial I do fear that the across the board public sector pension strike will not take due account of the differences between the sectors. In the Local Government Scheme we pay between 5.5% and 7.5% of our salaries into the scheme; our employers also make a contribution (around 10% I think) and the scheme is, basically fully funded although some funds are running deficits at the moment.