Unions Pensions Surrender

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LOCAL government trade union leaders yesterday called off this month’s planned pensions strikes and accepted Deputy PM Prescott’s abolition of the Rule of 85 as ‘a framework for developing a new look scheme’.

The surrender took place at a meeting chaired by TUC general secretary Brendan Barber at Congress House, London.

The TUC said: ‘At a meeting of all the unions representing members covered by the Local Government Pension scheme this morning (Wednesday) a proposed joint statement with the Local Government Association was unanimously recommended for endorsement.

‘Each of the unions will now urgently be holding their necessary internal consultations on that recommendation.

‘The joint statement, which has already been endorsed by the Local Government Association, is the result of detailed informal discussions over recent days.

‘It establishes the framework for the detailed negotiations on future local government pensions.

‘To facilitate these negotiations it is being recommended that all the industrial action currently planned should be suspended.’

Commenting on behalf of all the trade unions, Barber added: ‘I am very pleased that it has now been possible to agree with the Local Government Employers a sensible framework for the detailed negotiations necessary on the future of the Local Government Pension Scheme (LGPS).

‘Those negotiations will focus on the proper protections for the pension arrangements of existing staff and the long term.’

He added: ‘It is intended that these negotiations will be commenced urgently.’

The first paragraph of the ‘Local Government Pension Scheme Joint Statement’ says: ‘The statement by the Minister for Local Government on 30th March laying Parliamentary Orders, including the Order to abolish the Rule of 85 from October 2006, provides a framework for developing a new-look scheme.

‘He said that “in the light of discussions held yesterday with the Trade Unions and Local Government Employers, we are calling on both sides to begin talks, to start now on a nothing ruled in nothing ruled out basis, to address the protection of existing Scheme members, the recycling of savings, and the development of a more equitable Scheme”.’