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Latest NewsPay & benefitsPensions

Government denies public sector pension overhaul

by Personnel Today 27 Aug 2009
by Personnel Today 27 Aug 2009

The government has hit back at claims that millions of public sector workers will be stripped of their final salary pension schemes.

The Communities and Local Government department denied a report published in the Times yesterday, which suggested a series of proposals were being drawn up to overhaul the pensions of two million council workers, covering short, medium and longer terms.

The report suggested that senior staff could lose out on tens of thousands of pounds a year if the changes are applied across the board, and said doctors, nurses and teachers were likely to face changes.

It also claimed than plans to move to a ‘career-average’ scheme were among the proposals.

But a Communities and Local Government spokeswoman said: “This story is based on ill-informed speculation. The government will continue to make sure the LGPS [Local Government Pension Scheme] remains fair, solvent, protected against risk, and affordable to the taxpayer, and it is maintaining constructive dialogue with scheme members to ensure this objective.

“As we’ve made clear before, any statutory changes to the scheme would be subject to a formal consultation exercise.”

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