United in defence of public sector funds

A consortium of 11 bodies representing state employees has written to scheme members warning proposed reductions in benefits or restrictions in memberships represent a “policy of poverty”.

An email entitled ‘The truth about the local government pension schemes’ made a case for the long-term sustainability of public sector schemes.

It claimed benefits owed required affordable employee contributions and were largely unfunded by council tax.

According to the document: “Public sector pension schemes are under almost daily attack. Claims that the schemes are unaffordable, gold-plated or featherbedded have become automatic in many areas.

“Statements like pensions ‘black hole’, ‘pension apartheid’, ‘unsustainable perk’ etc are heard repeatedly.

“It is essential unions refute these attacks and stop the politics of envy resulting in a policy of poverty for all.”

It went on to warn closing state defined benefit schemes to new members would increase taxpayer responsibility for retirement funding through the state pension, and pointed to existing defined contribution provision in the private sector as an example of employers “washing their hands of decent occupational pension provision”.

Public sector pensions also proved a controversial political topic at last month’s Affordable and Sustainable Local Government Pension Scheme Conference.

Speakers including Local Authority Pension Fund Forum chairman Ian Greenwood and London Pensions Fund Authority chairman Anthony Mayer were largely in agreement with the unions.

But delegates on the floor were less convinced, with one accusing the pro-final salary consensus of being “too cosy”, another “complacent” and another “hot air, all talk and no action”.