UK - Local government representatives are calling on the government to address the poor take-up of pensions among low paid local government staff.
The move follows the release of figures from public sector union Unison, which show the take-up rate of the Local Government Pension Scheme to be only 60%, with the majority of workers not in the scheme in the lower paid bracket.
The research has been submitted to the Local Government Pay Commission as part of a consultation on remuneration in the public sector.
Pensions officer Glyn Jenkins said: “Low pay excludes many individuals from the possibility of saving for their retirement and from a crucial part of the remuneration scheme.”
He explained that nearly half of those not in the LGPS have earnings that are too low for membership to be of any benefit.
LGPC pensions adviser Terry Edwards agreed and said: “For low-paid local government workers it is not necessarily to their advantage to take up membership of the LGPS because they will lose their means-tested benefits.”
He stressed that the government must act to redress this situation.
Unison recommended that the Commission undertakes an examination of the impact of pensions credits on the pension outcomes of local government staff in the LGPS.
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