Wednesday, April 19, 2006

JUST LGPS JOINT TRADE UNIONS STATEMENT

The new Joint Statement with the Local Government Association (LGA) attached marks a major step forward in seeking to resolve the ongoing dispute over changes to the Local Government Pension Scheme. It follows a magnificent day of action on 28th March which saw the largest strike this country has seen since the General Strike in 1926. This strike was decisive in making the LGA change its position and sign up to the joint statement, with the support of the TUC.

The statement provides a framework for immediate negotiations and addresses the major concerns which have underpinned our dispute. It improves upon the statement made public by the LGA on the 7th April.

The key points in the Joint Statement are:

• The recognition that an agreement must be reached urgently on agreed costings and savings. The unions have retained the leading City firm of actuaries – AON – to support the negotiations. Their work has already made a substantial impact on the calculations of the costs of protection and savings by the Government Actuaries Department. They have shown that there is enough money to provide full protection and make improvements to the future scheme

• The agreement that 50% of the savings arising from abolition of the 85 Rule and the provision for a 25% tax free lump sum will be made available to provide protection and scheme improvements, in line with other public sector schemes

• A commitment to urgent negotiations on protection, including full protection for existing members, alongside discussions on the new scheme

• An agreement that any future changes to the LGPS should be made by agreement, rather than imposition by the Deputy Prime Minister wherever possible

• An agreement to amend the existing Regulations to reflect the outcome of the negotiations before the 85 Rule is removed on 1 October

The joint unions took strike action on 28 March to bring the employers back to the negotiating table. We have achieved that and now a negotiating timetable will now be drawn up and shared with members. However, should the negotiations fail we have made it clear to both the Government and the LGA that we will not hesitate to re-start the action.

It was recognised that negotiations would also continue in Scotland – and Northern Ireland where appropriate – and that full support would be given to the trade unions there in attempting to secure parallel agreements.

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