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GMB members to decide on local government pension off er

members working in local government in England and Wales will soon be balloted on whether to accept the new Local Government Pension Scheme (LGPS). “GMB members in the Local Government Pension Scheme will be relieved that at long last the uncertainty is over and they are able to see the future proposals for their pension scheme,” said GMB national secretary Brian


price index (CPI) as the revaluation factor (the current scheme is a final salary one).


normal pension age (NPA) would be their state pension age. (the current scheme has an NPA of 65).

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Average member contributions to the scheme would be 6.5 per cent (the

same as the current scheme), with the rate 22

The accrual rate would be 1/49th (the current scheme is 1/60th).

There would be no normal scheme pension age. Instead, each member’s

fter months hammering out a compromise with employers and the government, GMB is very pleased to announce that

Strutton. “Jointly negotiated by employers and unions and ratified by government, I believe the proposals strike a fair balance between all the conflicting interests we have had to take into account.”

For the vast majority of members, rates in

the new scheme will be the same or lower than they are now. There will be an improved accrual rate upon conversion to a career average scheme, and the retirement age will be linked to the state retirement age. “Most importantly, I believe the proposals lay the foundation for continued sustainability

of the LGPS,” said Mr Strutton. “This is something that the government’s original proposals would not have done.”

The off er will aff ect individual members

diff erently, so GMB will hold briefings and a consultation before sending out ballot papers in August. If members vote yes, the government will implement the proposals. GMB will be briefing members on the

final proposals between now and the end of July. If members accept the scheme, the proposals will come into eff ect in 2014. See below for more details.

What’s on off er? The main provisions of the proposed LGPS 2014 6

A career average revalued earnings (CARE) scheme using the consumer

determined on actual pay (the current scheme determines part-time contribution rates on full-time equivalent pay). While there would be no change to average member contributions, the lowest paid would pay the same or less and the highest paid would pay higher contributions on a more progressive scale after tax relief.

Members who have already opted out of the scheme (or who are considering opting out of the scheme) could instead elect to pay half contributions for half the pension, while still retaining the full value of other benefits. This is known as the 50/50 option (the current scheme has no such flexible option).

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For current scheme members, benefits for service prior to 1 April

are protected, including remaining ‘Rule of 85’ protection. Protected past service continues to be based on final salary and current NPA.

Where scheme members are outsourced they will be able to stay in the scheme on first and subsequent transfers (currently this is a choice for the new employer).

See for more details. Hard copies are available from your GMB regional of ice. All other terms remain as in the current scheme.


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