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
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.
For more information