14 April 2006
Unions this week suspended plans for strikes in the lead-up to the local elections, following what they called a 'very positive move forward' in the dispute over the local government pension scheme.
The dispute involves the removal of the '85-year rule', which means members whose age plus years in service is 85 may retire at 60 without a reduction in their accrued benefits.
In a joint statement, all ten unions and the Local Government Association said they accepted the removal of the rule. But they agreed that 'urgent negotiations' would now begin in order to ascertain what level of protection – including lifetime protection – could be afforded to existing scheme members.
The LGA has previously argued that lifetime protection was unaffordable.
Heather Wakefield, the head of local government at Unison, told Public Finance the unions had won a 'significant concession' from the LGA. Their joint statement now said that 50% of savings from removing the rule, as well as of savings from other reforms, could be used to fund benefits.
The LGA and government had previously stated that only 'up to' 50% could be used. An LGA spokesman confirmed that the change represented a concession.
Wakefield added, however, that the unions had agreed to suspend only strikes planned for April 25, 26 and 27. Unions could call a legal strike until June 2, after which they would re-ballot members.
Unions and the LGA have now agreed a 'framework' for negotiations. A central issue will be to agree a final estimate of the savings and costs involved in any changes.
The negotiations will also now involve the development of a 'new-look' scheme, offering more attractive benefits to low-paid staff.
PFapr2006
