Tuesday, 4 October 2011

Council pensions not gold plated

Evidence that workers in the Local Government Pension Scheme (LGPS) get lower pensions than those in private sector final-salary schemes was highlighted by the Trade Unions recently in a report by High Pay Commission showing that private sector final salary pensions pay on average £5,860 compared with £ £4,119 under the LGPS.

The Trade Unions have been saying this for months, but we have also been pointing out that the LGPS currently takes in over £4 billion a year more than it pays out, by increasing member contributions, which effectively reduces costs to employers, may cause many currently in the scheme to leave not that I'm advocating anyone does that but members of the scheme will question the affordability as many are financially pressed through pay freezes and the rising costs to living.

It shouldn't be that those in the public sector have to defend their pensions but the reality is that the media are often against us, the government are against us, so we are left to highlight some of the myths out there about our so called 'Gold Plated Pension'. Pensions busting the myths.

But that isn't the whole picture.

Public service workers are being asked to pay more in pension contributions by an average of over 50% - if you earn above £15,000. It's the equivalent on average of a 3% pay cut and this extra money isn't being used to improve pension schemes for the future, it's going straight to the Treasury to pay for the bankers' crisis.

If you work in the Public Sector vote YES to protecting your pension and if your not in a Trade Union sign up today preferably with UNISON of course to make sure your vote counts.

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