On December 5 the government launched its latest attack on local government pensions by laying Draft Regulations before parliament that would considerably weaken these workers conditions.
While the scheme is referred to as the local government scheme and covers all local government workers it also affects workers in Further Education, the Fire Service and the police.
The union that organised the majority of these workers, UNISON, reacted angrily: its Local Government Service Group voted unanimously to ballot in January for industrial action. The proposed changes include • Ending the 85 Year rule October 06
At the moment those whose combined age and length of service is 85 can retire at 60 with no reduction in pension. The change would mean people can still retire at 60 but would face a reduction in benefits of up to 33 per cent • Protection
The Draft Regulations are very vague about of protection for existing workers saying that these arrangements will cost no more than what was offered last March. That offer was rejected by 82% of UNISON members. • Calculation of Benefits
There is a new method of calculating benefits, which allows people to receive a higher lump sum in exchange for a reduced long-term pension if they choose to do so. This change has been accepted by the trade unions.
The regulations will come back to Parliament for further discussion on February 28 and are due to become law April 1. Myths and Reality The propaganda machine of both government and employers has been working to plant in the mind of the public myths about our pension scheme. MYTH 1: All Local Government workers retire at 60. REALITY: The average retirement age for Local Government Workers is 64.5 years
22 per cent of those who retire early do so as a result of ill health. MYTH 2: All Local Government Workers get fantastic full pensions. REALITY: The average pension is £3600 per year; women have an average pension of £1500 per year. This is 46 to 100 times less than the average pension of a CBI Director. MYTH 3: There is not enough money in the schemes REALITY: Most schemes are in a healthy condition. Some employers have taken pension holidays, resulting in some funds being worse off than MYTH 4 The Government has to end the 85-year rule to comply with Age Discrimination Legislation. REALITY: The Government Draft Age Discrimination Regulations specifically exclude pensions.
Legal advice confirms the 85 Year Rule can be justified under European law.
Activists will be working hard to ensure a substantial PAY UP FOR
PENSIONS - TUC turn out and vote for industrial action against these proposals which would see the introduction of not only a two-tier but a multi-tier scheme.
Unfortunately the recent decision of other unions in the civil service, teaching etc to agree to government assaults on their pension schemes means that workers power to beat back the attacks on their conditions has been weakened.
Nevertheless workers in this scheme do have the capacity to defeat these reactionary proposals and all trade unionists and socialists have a strong interest in supporting them in doing so. Local government unions were at the centre of earlier protests