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A New Generation of "Pension Paupers"

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Date / 16th December 2004

GMB Union issues strike threat over proposed changes to Local Government Pensions Scheme The giant GMB General Union has today warned that unless trade unions are allowed to negotiate over the proposed new Local Government Pension Scheme (LGPS) it will ballot its 250,000 local government members with a recommendation to take strike action.

The new Local Government Pension Scheme is due to be introduced in 2008 and trade unions have no rights to negotiate over the terms of the scheme on behalf of their members.

Among the proposals contained in LGPS 2008 are:

• Increased contributions from nearly all of the scheme members;
• A significant reduction in benefits which will impact most heavily on the lowest paid; and
• A reduction in costs for local authorities despite the extra £1 Billion set aside in the pre-Budget report to help local government reduce pressure on council tax.

GMB Public Services National Secretary, Brian Strutton, said

"These proposals as they currently exist will create a new generation of pension paupers and unless Government allow us to negotiate on behalf of GMB members over the terms of LGPS 2008 we will ballot our members on strike action.

"Many of the employees that GMB represents are extremely low paid and cannot afford to be members of the existing scheme. The proposed new scheme will reduce take up even further and will lead to poverty in retirement for tens of thousands of employees.

"My office has been inundated with calls from angry local government employees who are worried sick about what the future might hold for them. The Government must act quickly - and announce formal bargaining arrangements - so that we can sit down and talk about these proposals. Platitudes about 'consultation' are just not good enough"  

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