Unity Magazine - Nov 2004

"Life may not be the party we hoped for, but while we are here we might as well dance."

Pensions Special
This affects you - please read it.

Views Sought On Local Government Pension Scheme

Consultations have begun on the future of the Local Government Pensions Scheme with the Office of the Deputy Prime Minister stressing that affordability and sustainability have to be the key to development. The proposals include increasing the contributions paid by staff. Details have been sent to all stewards to circulate.

It is proposed that any new arrangements for the scheme should be in place by 2008.

The consultation sets out a number of areas for discussion, including the idea of phasing the transition from work to retirement, the provision of pension benefits to partners of council employees, improving access to the scheme for workers in low pay bands and part time workers, as well as increasing overall the contributions paid by members to the scheme.

Questions you should ask. Are our pensions being used as a political football?

Why are changes to the retirement ages in the Local Government Pension Scheme for England and Wales being rushed through a year earlier than anywhere else in the public sector? And why have we not been presented with a detailed financial breakdown of the proposed savings retirement age increases may provide?

Rather than rushing through the regulations on retirement's ages would it not be more strategic to have the debate and discussion on this issue within the consultation that is now taking place for the introduction of a new local Government pension's scheme for implementation in 2008?

The Government is now consulting on the principles for a new local government pension scheme for 2008, one of its key proposals is to increase the level of basic employee contributions for those earning over £7,000 a year from 6 - 7%. Do Ministers not see that this increase could force low paid workers out of the pension scheme and as a result increase the level of pensioner poverty in the future?

Question for Labour MP's only. We are now in the run up to a likely general election and want to know where our MPs stand on this. Write to them and ask.

Local Government Pension Scheme Oct 2004

Who will the proposed changes to the Local Government Pension Scheme effect?

The Local Government Pension Scheme (LGPS) covers Local Government
staff, staff in Police, large numbers of people working in Higher Education, the Community and Voluntary Sectors, the Environment Agency plus many new members now working for private contractors.

What are the Key issues?

There are two key separate stages that members need to be aware of

1. The Government are bringing forward new regulations to alter the current retirement ages in the LGPS.
   
2. There will be a consultation on the Governments proposals for a totally new local government pension scheme to come into force from April 2008.

It is these issues that we wish to take up with MP's of all parties in our lobbying work

New Regulations

The Government will be putting new regulations for the LGPS (England and Wales) before Parliament shortly with an implementation date of the 1 April 2005: The regulations include the following measures:

• Retirement ages - Currently you can retire at 60 on a full pension if you fulfil the 85 Year Rule. This rule allowed people to retire early on a full pension if their age plus number of year's service equalled or was greater than 85 years. This rule is to be abolished meaning that to be eligible for a full pension you will have to work till you are 65.
  
• Currently if you are 50 you can retire on other than health grounds but the regulations will change this to 55. You may even have to wait until the age of sixty to draw a deferred pension if the employer does not give consent.
  
• Transitional arrangements - A member who is 50 by 1 April 2005 will still able to retire early before 55. Likewise a member who is 60 before 1 April 2013 will be able to retire before 65 with an unreduced pension, but only if their age and length of service is equal to or more than 85 years (referred to as the Rule of 85).

Key points

• The changes to the LGPS in England and Wales are being implemented a year before anywhere else in the public sector.
  
• These changes are being rushed, there is a significant lack of information, and no one knows precisely how many members will be affected or the true cost of the changes.
  
• UNISONs position is that our members are being treated unfairly and that the real reason why these changes are being rushed in is because a number of local authority pension funds are in deficit.
  
• The reason for the deficit varies between authorities but undoubtedly past contribution holidays by the employer has been a significant factor.
  
• UNISON believes we should delay any changes to the LGPS so that a full strategic review, within the current consultation for a new local government pension scheme, can take place.
  
• The transitional arrangements will also be significantly less favourable than those for other schemes such as the Teachers Pension Scheme.

Proposals for new Local Government Pension Scheme

On the 4 October the Office of the Deputy Prime Minister issued a consultation paper on proposals and principals for a new pension scheme to come into force in April 2008. UNISON will be formally responding to the consultation but it is still a good idea for members to raise concerns regarding the proposals in their lobbying work. The key areas in this consultation for discussion include:

• Final Salary Scheme - Retaining a funded, public service final salary scheme but with a possible option for employees to join money purchase scheme instead.
  
• Basic employee contributions - increase in rates from 6 - 7% for those earning between £7, 000 - £38, 000 per year and 9% for those between £38, 000 and £80, 000
  
• A lower employee contribution for those earning less than £7, 000 per year. For those earning less than £5k the proposed contribution rate is 2.5%, for employees earning more than £5k but less than £7k proposed rate is 5.5%
  
• Pensionable pay - to be based on basic pay only i.e. excluding bonuses and shift allowances.
  
• Ill heath retirement - At present if you are permanently incapable off undertaking your job you are entitled to retire with enhancements to your pension. The paper is seeking views as to whether there should be two tier provisions. 1st level you would be able to retire with full pension enhancements if you were classed as permanently incapable of undertaking any job. 2nd level you would not receive any pension enhancements if you were only permanently incapable of doing your present job.
  
• Death in Service - Cover increased from 2 to 3 times' pensionable pay but short-term widow/er pensions to be scrapped.
  
• Partners Pensions - surviving children, married, unmarried or civil registered partners to be eligible. The Government has introduced an amendment to the Civil Partnership Bill which will backdate entitlement on all public sector schemes to 1988 (only for civil registered partners) Key points to stress in your lobbying
  
• Final Salary - UNISON welcomes the reaffirmation that the scheme should remain a good final salary scheme. We are however strongly opposed to the introduction of the option to join a defined contribution scheme; our concern is that workers will be ‘persuaded' to opt for money purchase undermining the long-term viability of final salary.
  
• Employee contributions - We welcome the proposed lower contribution rate for low paid staff but we believe the increase in contribution from 6 - 7% for those earning basic pay over £7, 000 will act as a disincentive to employees to join the pension scheme. There should be no increase in employee contributions until the effect of past under-funding of the LGPS and contribution holidays has been corrected.
  
• Personable pay - Basing pensionable pay on basic pay only will be detrimental to those on bonuses and shift allowances who rely on those allowances to receive adequate pay and thus an adequate pension.
  
• Ill heath retirement - UNISON strongly opposes any attempt to reduce current level of benefit and is particularly concerned about the impact it will have on those employees, who despite health concerns, are forced to work till they are 65.
  
• Death in Service - We welcome the increased cover from 2 to 3 times'
  pensionable pay
  
• Partners Pensions - UNISON warmly supports the extension of survivors pension rights to unmarried and civil registered partners. We have pressed for many years for the end of discrimination against same sex and unmarried partners. We are however opposed to members having to pay the full cost of backdating. Why should people have to pay to be treated the same as married couples.

DCC Pensions highlighted

Members may have seen the article in the Express and Echo which indicated that the Pension Fund has a £239m deficit. Roberto Franceshini the Branch Chair also serves as an employee's representative on the Pension Fund Board and indicated that the deficit is theoretical and that the fund is solvent.

Prize for Sue - Top national prize for Devon County Council employee

Sue Kelley, who is equality and diversity officer for Devon's Education, Arts and Libraries directorate, won a National Training Award for her pioneering work. The awards attracted 1,003 entries from all over the United Kingdom and Sue was presented with her national prize by the former swimmer Sharon Davies at a special event in Cheltenham. UNISON send congratulations on her achievement.

Councils face recruitment crisis

Key council services will grind to a halt unless the recruitment and retention crisis is tackled urgently.

A UNISON survey of more than 3,000 staff published earlier this year revealed almost a third of council staff were seriously considering quitting their jobs because of low morale and high levels of stress, compounded by poor pay and conditions.

Many complained that career paths and training opportunities were in short supply, which tallies with the Employers Organisation's own findings which found 30% of councils had skills gaps.

Part of the problem was that local government suffers from a "serious image problem with young people" which should be urgently addressed to stop the crisis worsening. Young people with student debts to pay off need to be persuaded councils offer viable options, he said.

"Local authorities need to offer interesting, challenging and rewarding work with good career prospects, if they hope to compete with the private sector," he said.

"A career in local government used to be seen as secure with a decent pension at the end of it. Today, proposed changes to the pension scheme threaten to undermine that security and without new blood coming into the scheme the pension's crisis will only deepen."

UNISON today reiterated calls for a new minimum wage of £6.50 an hour, to free low paid workers from in-work benefits and taxpayers from the burden of subsidising poverty wage employers.

UNISON's latest submission to the Low Pay Commission argues that £6.50 an hour is the minimum needed for the government to achieve its aim of eradicating poverty and making work pay. The union is today drawing up a coordinated pay strategy at a meeting of UNISON negotiators.

Figures released by the Local Government Association' reveal councils are heading for a drought, with 94% of employers reporting recruitment and retention difficulties across the board.

The biggest recruitment struggle for councils is in social work, with children and family posts the hardest to fill (88%), followed by care in the community (75%), residential (61%) and approved social work (51%).

Half the authorities have problems recruiting teachers and educational psychologists, and face an uphill task in recruiting planning officers and environment health.

Almost half of the 172 authorities surveyed also admitted difficulties filling manual jobs (46%), while just less than one in five had problems finding clerical and administrative staff.

Only 8% of local government staff are aged under 25, while a quarter of the workforce will retire within the next decade.

Job Evaluation - did you get a questionnaire?

UNISON recently asked for clarification as to how persons were selected to get a questionnaire. Rod Worrall who heads up the J.E team indicated that the choice of who receives questionnaires is strictly limited to the J.E. Team who have to ensure compliance on the grounds of Equality and Diversity and this applies across all Directorates.

If you get a questionnaire do not be rushed into filling it in. Consider carefully the wording used and discuss this with your colleagues in the same job family and your union representative. If your manager disagrees with what you have put, they have to indicate the reasons for this in writing and you can challenge this.

Remember it is about what you do, not what they think you do.

Education

For up to date information about courses don't forget to log on to our own Branch Website for information.

Black and Asian Workers Programme
5 days 15 - 19 November

This course is aimed at Black and Asian union reps. It will include developing an understanding of race equality, organising Black and Asian workers and networking with others involved in for developing the union.

All TUC courses will be held at the TUC National Education Centre, Crouch End, North London.

Financial assistance for education 2004

UNISON members, and regions / branches on their behalf, can obtain details and application forms for financial assistance from the Open College.

As each scheme runs from January to December, funds are now exhausted as far as book grants and open university awards are concerned. But applications are still being accepted for bursaries and flexible bursaries.

Contact: Ali Cluett (020 7551 1714, or open.college@unison.co.uk or a.cluett@unison.co.uk

Contact: Rose Gander () Branch Education Co-ordinator for more information.

Health and Safety

UNISON issues the following standard guidance to members on dealing with accidents at work. If you or any member needs further advice contact UNISONdirect on 0845 355 0845.

Reporting the accident

All accidents, near misses, injuries or violence at work must be recorded in the workplace accident book. If you are ill or have to take sick leave due to an accident, injury or illness at work, visit your GP. Report the accident to your UNISON branch. It is important that unsafe working practices are rectified so that other workers do not suffer.

Personal injury claims

If there is negligence by your employer, UNISON may be able to represent you (without any charge) in making a legal claim for compensation. Details of the case will be considered by the union's agent solicitors and, where appropriate, they will proceed to make a claim.

If you wish your case to be considered by our solicitors:

• contact your UNISON representative, or
• telephone UNISONdirect on 0845 355 0845 or
• email the UNISON accident helpline at accidenthelpline@unison.co.uk.

UNISON accident benefit

Members are eligible for UNISON accident benefit where they are unable to work due to an accident in the course of their employment, an accident while travelling to work or an accident while on union business. Contact your steward, or UNISONdirect.

UNISON Welfare

UNISON Welfare may be able to offer financial assistance in the form of a grant or a loan, or to assist in providing a recuperative break or convalescence.

Application forms are available from your branch welfare officer, steward or UNISONdirect.

State benefits

If you are off work and receive very little or no occupational sick pay, a range of state benefits are available.

Joint Statement by Management and UNISON

We are very pleased to report that the Personnel and Performance Directorate and UNISON have successfully undertaken three half day facilitated workshops over recent months in order to improve effective joint working.

As a result discussions have recommenced regarding ongoing negotiations relating to job evaluation and staff travel. Further information on those specific matters will be communicated in due course by the appropriate media in place.

We are pleased to share the spirit of that improved working with elected members, UNISON members and all staff.

Heather Barnes	Roberto Franceshini	Moira Andrews
Director of Personnel & Performance	UNISON Branch Chair Persons

Contributions are welcome in electronic form if possible (my typing is very slow and the spelling a little erratic). They should be sent to the Union Office at County Hall.

Andy Bowman
The views expressed may not reflect the views of the Devon County UNISON Branch