Aberdeenshire UNISON

Pensions Update November 2006

Scottish scheme looks set to be better

Trade unions in Scotland look set to negotiate a better pensions package for members than in England and Wales.

Whilst the Rule of 85 is to be removed from the Local Government Pension Scheme, transitional arrangements negotiated in Scotland will provide protection up until 2020, compared with only 2016 south of the border.

And in Scotland, all the savings to be made from scrapping the Rule of 85 will be ploughed back into a new look pension scheme, whereas in England and Wales only half the savings will be retained.

Judicial review lost

UNISON members will no doubt be disappointed that the magnificent day of action held in March did not save the Rule of 85. However, UNISON lost the Judicial Review in England and Wales heard in September and has had to accept that the Rule of 85 must go. The focus now is on negotiating the best possible new look pensions scheme in Scotland. Negotiators are confident that they are on course to do just that.

"Removing the Rule of 85 will also release financial savings from the local government pension scheme. We are determined to ensure that every saving made from its removal will be put back into the LPGS. This will help ensure that the new scheme is fair, healthy and delivers for all its members," said Tom McCabe, Minister for Finance and Public Services Reform.

The next pensions Delegate Meeting will be held on Friday 1st December 2006. 

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