UK - Trade unionists are demanding government action to protect the pensions of public sector workers who are transferred to private firms.
The GMB’s public services conference said transferred-out employees should be able to remain members of the Local Government Pension Scheme rather than being forced to join inferior schemes offered by private sector employers.
GMB public national secretary Brian Strutton said: “Until the government changes the two-tier workforce code to allow all employees to remain in their existing pension scheme, public sector workers will feel that Labour’s promise to end the two-tier system in our public services is a hollow one.
“Despite the prime minister promising ‘no less favourable’ terms for employees whose jobs are privatised, the fact is terms and conditions for these workers are much worse – particularly their pensions – than those who remain in the local government scheme.”
The GMB also unveiled plans to “name and shame” private sector firms which had taken on former public sector workers but which did not offer pension benefits that matched the Local Government Pension Scheme.
Occupational pension provision has continued to grow in value, but there remains large variance in incomes across the pensioner age group, according to latest government data.
Defined benefit (DB) schemes could have an aggregate surplus by 2021 under Pension Protection Fund (PPF) projections, its strategic plan for 2018 to 2021 reveals.
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.
This week's top stories included coverage of the much-anticipated defined benefit (DB) white paper and the sector's reaction.