UK - London Pension Fund Authority chief executive Peter Scales wants council workers to be given a choice over how much they contribute to their pension.
Scales believes that allowing low paid workers to contribute less would ensure more joined the Local Government Pension Scheme – although they would forego some benefits.
A system of “cafeteria benefits” could be adopted in changes to the LGPS due to be announced this autumn by the Office of the Deputy Prime Minister.
But the Local Government Pensions Committee (LG%) is not in favour.
LG% assistant director Terry Edwards said: “If you give people a choice at the outset, history shows that most people will make the wrong decision and it is not until later on that they come back and say ‘if only’.
“If you offer people a lower package, lots will go for that lower package.”
Most people think it is right that savers take responsibility to protect from pension scams.
More than 100,000 savers face being landed with huge tax bills following tiny uplifts to their pension, a Freedom of Information (FOI) reply has revealed.
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