UNISON Scotland Protecting Our Pensions Letter from Matt Smith to MSPs

UNISON Scottish Secretary Matt Smith's letter to MSPs seeking justice for members of the Local Government Pension Scheme (LGPS).

Members of the Scottish Parliament
Scottish Parliament
Edinburgh
EH99 1SP
21 December 2005

I am writing to ask for your urgent help in securing justice for members of the Local Government Pension Scheme (LGPS) in Scotland.

You will be aware from previous correspondence and from our regular e-mail briefings to you that this is a matter of considerable concern to our members.

Negotiations have been taking place over the future of the LGPS, alongside separate talks through the Public Services Forum (PSF) with Alan Johnston, Secretary of State at the DTI, over the other public sector pension schemes.

Whilst the LGPS negotiations technically only affect the scheme in England and Wales at this stage, and Scottish Employers have stated that they do NOT agree with some of these proposals and in particular challenge the analysis that the ‘Rule of 85’ is discriminatory, it is clear that the Scottish Public Pensions Agency, has the clear intention that Scottish pensions should substantially follow policy established in England and Wales. This is despite different circumstances, such as there being no revocation costs in Scotland.

On 18 October the PSF reached an agreement, endorsed by the Cabinet, on the future of the NHS, civil service and teachers pension schemes which included life-time protection of existing scheme benefits and pensions age for existing members.

However in the negotiations on the LGPS, members are facing derisory proposals for the reform of their pension. These include:

This cannot and should not be allowed to happen. Local government, police, some Scottish NDPBs, HE and FE support staff and those in community and voluntary sector jobs covered by the LGPS are increasingly being asked to work in joined up service delivery arrangements. Low paid LGPS members, such as cleaners, janitors and classroom assistants in schools work alongside teachers. They will be required to work 10 years longer than teachers if the employer’s derisory proposals are allowed to proceed. Joint initiatives across health and local government would see the current inequalities in pay and access to career development made even worse by pension differences.

It is vital that we secure an agreement for equal treatment for LGPS members. If not, there will be a demoralisation and anger across our public services hindering the reform process and leading to industrial action ballots across the unions.

Already the LGPS is the least favourable of all the public sector pension schemes, despite being the only funded scheme, with less Government financing than other schemes. Our members are not pension fat cats, 75% get a pension below £5000. The average pension for a woman is a derisory £1,616 according to ODPM figures.

I would urge you to do everything you can to bring justice and equal treatment to LGPS members in Scotland. The Scottish LGPS is administered by the Scottish Public Pensions Agency with ministerial responsibility resting with Tom McCabe MSP, Minister for Finance and Public Service Reform. Therefore could you please write to Tom McCabe urging him to treat Scottish LGPS members in the same way as other public sector workers and support the UNISON Scotland campaign in whichever way you can.

Please can you let me know your response and any action you have taken to forward this campaign.