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  3. Update on Local Government Pension Scheme

Update on Local Government Pension Scheme

March 26, 2012
Circular ref
2012HOC0181MW

Dear Brother/Sister,

The FBU has a seat on the LGPS Joint Trade Union Side Officials Meeting where it feeds into the discussions and receives updates regarding the latest negotiations between the unions' and Government.

The most recent meeting took place on 24th February where members were informed that the team negotiating the new LGPS was awaiting a response from Government on new scheme proposals formulated by the Negotiating Group. It was agreed that once the Negotiating Group was in a position to report on the proposals, that a meeting will be held to brief all LGPS TU Side unions' simultaneously.

The timelines for negotiations mean that the so called 'Big Issues' such as accrual rates, contribution increases and Normal Pensionable Age (NPA) need to be agreed very soon. This will enable legislation to be formulated and be in place by March 2013 in order that a valuation takes place and for the new scheme to be introduced in April 2014.

We have made it clear at these meetings that the Heads of Agreement (HOA), which was agreed by the negotiators and forms the basis for negotiations around the changes to the scheme, is still unacceptable to the Fire Brigades Union.

This HOA brings forward several of the Hutton recommendations by one year to 2014 including a move to link the Normal Pension Age with the State Pension Age. The HOA also means that there will be a delay in the increase in employee contributions until 2014 to coincide with these other proposals.

Government are still expecting to realise the same savings over the same period but have proposed a position where this can be made up from lower contribution increases contributions and a swifter increase in NPA.

We have made clear that we do not accept the proposal for any increase in retirement age as our Control Members already work until 65; the HOA means the eventual introduction of an NPA of 68.

A key strand of our trade dispute is to try and gain access for FireFighter (Control) into a Fire Service Pension Scheme.  As part of the ongoing negotiations with the Government the FBU has been having regular meetings with the Fire Minister and Civil Servants at CLG and have pressed home the wish for access by Control Members to a Fire Service Scheme.  Negotiators recognise that this presents us with a number of challenges, but we will continue to develop our arguments around this point.

At the present time we are awaiting a report back from the LGPS Negotiating Group and once this is received we will be in a position to give you more information.

In the meantime you should continue to attend your branch meetings to make your views known and to hear feedback on the current situation in relation to the firefighter schemes.  The Control Staff National Committee continues to meet to discuss pensions, amongst other issues, and to hear reports from your branches and to represent your interests at national level.

Yours fraternally,

Matt Wrack

General Secretary

2012HOC0181MW

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