Manchester City Council

Industrial Action

The 99 funds which make up the The Local Government Pension Scheme, of which Manchester is a member, are together the biggest pension scheme in the country, holding more than £120 billion in assets on behalf of its four million members. The LGPS provides salary-related, defined benefits, which are not dependent upon investment performance. As it is a statutory funded pension scheme, it is a secure pension arrangement. Currently, the LGPS income from investments and contributions is between £4-5 billion more than it pays out. As a major shareholder in British businesses, property and regeneration, the LGPS is a secure and sustainable scheme, with enduring viability.

The Government is currently demanding £900 million in savings from the LGPS, and has now put forward proposals that have not been agreed with the trade unions, the representatives of the Scheme's members. This demand comes against a background of major changes previously agreed by the previous Government, employers and trade unions in 2008, which introduced benefit reforms and increased both employee and employer contributions.

As a funded scheme, the assets of the LGPS are sufficient to pay benefits for more than 20 years, without any additional contributions being made.

Now members of the LGPS - who receive an average pension of just £4,000 a year (£2,600 for women) - are being asked to make further sacrifices, on top of lower benefits and an increased retirement age. The Government is demanding that a further £900 million is cut from the Scheme. This amounts, effectively, to a tax on employee pensions.

The LGPS is affordable and sustainable for the long term in providing some security, in the form of decent future pensions, for some of the lowest paid workers in Britain. These pensions are far from being 'gold-plated'.

Without the LGPS, many local authority workers would be entirely dependent on taxpayer financed state benefits, which would be a further burden on the public purse.

There may, acknowledging the need to look far into the future, be a need for further changes to the Local Government Pension Scheme. But these should not be imposed and should be the subject of negotiation and agreement between local authorities and unions without interference from central government.

 

 

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There are 10 responses to “Industrial Action”

  1. Julian Shaw Says:

    Simple equation. £900 million is being taken back from the people who paid it. If that's not a hidden form of taxation I don't know what is, no matter how you dress it up.

  2. franky Says:

    Yes I entirely agree that it is an extra tax on workers. I understand that MPs pensions are under negotiation, but I don't suppose they will pay so much for so little.

  3. Paul Conlan Says:

    A Robin Hood tax on the wealthy + Put a stop to the perverse bonuses awarded to investment bankers = £90 million +

  4. Mr X Says:

    Hear, hear. This statement should be posted in big letters on the front of the Town Hall. I hope Sir Richard gets the opportunity to express these views to as wide an audience as possible...national TV news please.

  5. Val Stevens Says:

    Very good explanatory blog. I fully support the defence of the the well run GM scheme. I am a very grateful beneficiary and would have had to claim extra benefit without it. Happy Christmas if possible after this dreadful year.

  6. i love jack russels Says:

    An excellent blog. I'm pleased to see the absolute drivel and lies currently being touted by tory/lib dem politicians, by SKY tv and by certain newspapers about public sector workers retiring on £20/£30K and about how it's tax payers who have to pay for it. Misinformation and lies targeted to divide public and private sector workers and hence deflect attention from who the real spongers are, i.e. this current government.

  7. john Says:

    The private sector fund your pension which is well above the national average. Start saving for your retirement instead of depending on the private sector paying for it.Dont forget throughout your civil employmeny all the leave flex special leave etc you get not to mention all the time spent on your PCs EMailing nonsense to each other.

  8. lazyitis Says:

    re John. Public sector workers pay tax as well. Furthermore, they also save for their futures, which is the main reason for the strike. Flex and special leave, alongside the currently decent pension, are benefits that have been fought for over the years, and will no doubt be eroded further if the Tory/Lib Dems have their way. The Government are using the age old tactic of divide (the public and private sectors) and conquer. Some , sadly are still falling for it.

  9. bernie Says:

    I just have to speak up for all the workers who work for very little wage at charitable organisations this is not through choice but mainly because we have disabled people to care for we work for very little wages and pay rises dont happen despite the fact we pay tax and NI contributions so we have to save out of this poor wage for our future ourselves .Dont need a sym,pathy vote this is just a comment and still grateful.

  10. Frank Says:

    Like most workers we are entirely dependent on taxpayers financed state benefits,not like state workers how get both and dont have to pay much towards them is this right no

 

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The blog of the leader of Manchester City Council, Councillor Richard Leese.

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