LGPS negotiators begin series of crunch meetings

Unions and local government employers will meet early next week to kick off three months’ of intense talks designed to produce a new Local Government Pension Scheme.

Representatives from the Local Government Association and TUC are set to hold technical meetings every week under a 12-week timetable to cost a new scheme by April.

Higher level discussions will also be held in parallel between stakeholders every fortnight in a bid to reform the scheme under Lord Hutton’s 2011 recommendations.

It follows a flurry of activity before Christmas, which saw government ministers lay out ‘Heads of Agreement’ with unions before a last minute policy shift threatened to derail the agreement.

Treasury chief secretary Danny Alexander and Cabinet Office minister Francis Maude announced the government would delay a 3.2% contribution increase for LGPS members set for this year into a “one event” change in 2014, incorporating wider CARE changes.

However, the publication of cost ceilings for the scheme by the Treasury and Department for Communities and Local Government minister Eric Pickles – capped at 10.9% for the taxpayer – led unions to withdraw from the agreement.
An emergency meeting between Alexander, Pickles, the TUC, Unison, GMB and the Local Government Association the following day led to all parties agreeing a “way forward” for the talks this year.

The TUC said: “All those involved welcome the speedy clarification from ministers that has enabled this agreement to be taken forward.” The next round of talks between employers and unions will commence early next week, though details are still to be finalised, a negotiator said.