Pensions Seminar

UNISON National Pensions Seminar

In recent years, local government pensions have become a key issue, including the dispute over the new pension scheme. Although the dispute has been resolved and some of the worst effects of the proposed changes offset or prevented, but pensions are still a ‘hot’ topic and not just for older members.

On March 25th Keith Blackburn attended, on behalf of the Branch, a Unison seminar on Governance and Representation in the Local Government Pension Scheme (LGPS).

General Secretary, Dave Prentis, gave an opening address in which he noted the forthcoming centenary of the State old age pension. He paid tribute to the unions involved in the struggle to achieve the state pension and noted the unions’ plans to commemorate the centenary alongside the National Pensioners’ Convention. The improvement of occupational pensions such as LGPS was not a substitute for an adequate State pension on which many workers, particularly women and part timers, would depend in retirement.

Other speakers included: senior civil servants from the Department of Communities and Local Government who outlined the Government’s view on these issues arguing that LGPS is not in the same situation as private sector schemes, which are trusts, as LGPS has a statutory guarantee;

speakers from three of the LGPS 89 schemes in England and Wales, viz, West Yorkshire, Greater Manchester and the Environment Agency. These schemes were selected as potential exemplars of what we wanted to achieve in terms of representation and governance. These funds demonstrated that member representation did not harm and had probably helped the performance of these funds;

a speaker from UNISON’s solicitor’s, Thompsons, who examined the legal issues involved and argued that the LPGS was subject to the requirements of the relevant EU Directive on representation etc

The seminar was rounded off by Colin Meech and Glyn Jenkins, the National Officers responsible for local government pensions. They pointed out that the performance of the individual schemes was very variable in investment returns, administrative costs etc. There is evidence, for example, that LGPS funds are being loaned to administering authorities and/or to other local authorities, and central government at lower than market rates and are being invested in PFI and companies taking on outsourced work from local government.

They outlined action plans including the following:

• Campaign advice/materials;
• Training;
• Research support;
• Web community;
• Regional seminars;
• Officer and admin support for reps;
• 1 day induction for reps;

The detailed statistics indicate that in the East of England Region there are 6 schemes (of which Essex is probably the largest.) Members in 72 Unison branches are members of those 6 schemes. If we were to meet Unison aspirations on member representation around 30 member representatives would need to be found, trained etc. Unison is looking for all Branches to have an activist specialising in pensions which would mean another 72, giving a total of 102.

A number of detailed issues where Unison nationally wants branches to feed back on the operation of the ‘new’ scheme after 1 April were identified- the treatment of ill health retirements, whether the new contribution rates were deterring part time workers from joining, and encouraging membership of LGPS.

The full details of all the presentations given on the day are available from Keith Blackburn.