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.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.