UK - Council workers will see their pensions plummet if defined benefit is replaced by a career average scheme, trade union Unison warns.
The union spoke out following the release of a discussion document by the Office of the Deputy Prime Minister to look at ways to improve the Local Government Pension Scheme.
Unison head of pensions Glyn Jenkins said: “The stark truth is that with the average pay of local government staff around £13,000 and the average pension in payment only £3,800, the LGPS is not gold standard, but the minimum standard for those staff to avoid poverty in retirement.”
Pension fund managers are concerned that changes suggested by the discussion document will make the complex LGPS even more difficult to administer.
Greater Manchester Pension Fund head of pensions administration Ged Dale said: “We already have over 200 pages of regulations for the existing LGPS with more regulations for pensions for councillors on their way.
“We therefore intend to cooperate fully with the ODPM over the new LGPS, with the aim of keeping it as simple as possible.”
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