Public Sector Pensions Reform

Government has launched a consultation into increasing employee contribution rates for the local government pension scheme in a bid to save £900m.

Cabinet Office minister and paymaster general Francis Maude yesterday claimed unions have no appetite for industrial action over pension reforms.

RMT will join other unions, including GMB, Unite and Unison, in balloting for strike action over changes to public sector pensions.

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Trade unions have proposed a "tramway" system for the public sector pension cost envelope which would give a two per cent leeway either side of fixed costs.

Lord Hutton has "misunderstood his own report", a trade union has claimed, after the former Labour minister accused it of not understanding the cost of public sector pensions.

Trade unions this morning declared war on government pension policy after three of the country's biggest unions confirmed 1.65 million workers would move to strike in November over public sector pensions.

A 12-week government consultation to save £900m from the LGPS will launch at the end of September even though plans on how to achieve the savings are still to be agreed.

Proposed reforms risk seriously destabilising the NHS pension scheme as high contributors leave or take early retirement, warns BMA pension committee chairman Andrew Dearden.

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