Pensions
Aspect believes that everyone working in education and children's services is entitled to look forward to and enjoy their retirement without undue anxiety over pension income.
Aspect participates in key national-level meetings with the Department for Communities and Local Government, and is currently lobbying for:
- key retirement pension benefits to be made available under the new-look local government pension scheme (LGPS)
- a number of safeguards to be put in place for existing local government pension scheme members following the abolition of the 85-year rule.
New-look local government pension scheme
A new consultation document has been published by the government outlining proposals for the future of the local government pension scheme.
Where next? – Options for a New-Look Local Government Pension Scheme in England and Wales sets out four possible options for a proposed restructured new look scheme to be introduced from April 2008, including final salary and career-average options.
For all the latest information on the new-look local government pension scheme go to the Department for Communities and Local Government's website.
To read Aspect's comments on the proposed changes go to www.aspect.org.uk/policy/submissions/.
National local government pension scheme review group
Aspect will be one of just four local government trade unions represented on a new national policy review group examining the future of the local government pension scheme.
The announcement, made by the Department for Communities and Local Government on 4 April 2007, entitles Aspect to a seat on the review group – along with the other big-name local government trade unions, namely the GMB, the Transport and General Workers' Union and Unison.
Other stakeholder representatives include: the Local Government Association, the Local Government Employers, the Welsh Assembly and the organisations which represent local authority treasurers.
The review group has been established to "enhance the governance of the scheme by involving key stakeholders in a constructive forum about its future".
Its first task will be to develop a shared approach towards meeting the future service costs of the new-look local government pension scheme.
The 85-year rule
The government has finalised transitional pensions protections for existing members of the Local Government Pension Scheme following the abolition of the 85-year rule.
The new regulations introduce a number of time-limited protections as follows:
- all existing local government pension scheme members at 30 September 2006 will continue to be able to build up service under the traditional 85-year rule until 31 March 2008. In effect this delays the abolition of the rule until that date
- the protection for existing local government pension scheme members at 30 September 2006, who reach age 60 or over and who would otherwise have satisfied the 85-year rule by 31 March 2013, has been extended until 2016. This extends the period to cover members now within nine and a half years of retirement
- existing local government pension scheme members at 30 September 2006, who reach age 60 or over and who would otherwise have satisfied the 85-year rule between 1 April 2016 and 31 March 2020, choosing to retire before the scheme’s normal retirement age, will have their post-April 2008 pension build-up reduced via a tapered reduction through to 1 April 2020.
The 85-year rule traditionally allowed local government staff to take early retirement without any pension reduction if their combined age and length of service added up to 85 years or more.
It was abolished when new age discrimination legislation came into effect on 1 October 2006.