Local government pension cuts denied

The
Employers’ Organisation for Local Government has dismissed a national newspaper
report that claimed public sector staff could receive reduced pensions.

In
a letter to all chief executives of local authorities, Charles Nolda, director
of EOfLG dismissed the Daily Mail article, which stated that ministers
are discussing plans to replace the Local Government Pension Scheme with a
cheaper alternative that could result in lower pension for millions of workers.

"It
is true that there is currently a DTLR-led officer group which is looking at
all aspects of the pension scheme. This
is a small group on which both the LGA and the Employers’ Organisation are
represented. It is at a very early stage of its work and no report has yet been
made from the group to ministers," said Nolda.

"It is highly misleading to
say that the benefits of serving staff might be at risk, since they cannot be
worsened within the existing legal framework.

"The
policy of the Employers’ Organisation is that a statutory defined benefit
occupational pension scheme is a key part of local government’s remuneration
package and should be retained," said Nolda.

By
Paul Nelson

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