UK – Unions and the Local Government Association (LGA) have published further proposals for the reform of the local government pension scheme (LGPS) amid dissatisfaction at delays to launch a government consultation.
The 12 proposals, published yesterday and coming as part of earlier negotiations to reform the LGPS post-2014, suggest the creation of a national LGPS board that would seek to improve value for money in areas of administration and investment.
The proposals were agreed by stakeholders over the summer, then submitted to government in July.
Earlier this week, Brian Strutton, the GMB union's national secretary for public services, criticised the Public Service Pensions Bill, which legislates for changes to both unfunded pension schemes and the LGPS.
He said the proposals were "incompatible" with the local authority funds, as they did not take account of their funded nature.
He added: "The proposals put forward by unions and employers at the end of July to manage the future costs of the scheme have received no response from government."
The joint statement released yesterday by unions and the LGA also hinted at dissatisfaction over delays by the Department of Communities and Local Government (DCLG) to launch a consultation.
Referencing July's submission, the statement said: "Extensive and detailed discussions have since followed with the government on these proposals, and a point of final sign off has not yet been reached."
It said further that the dozen proposals had now been published to "dispel any misinformation".
The proposals argue that governance and cost management are "equally essential" to sustainability of the LGPS and should therefore not be considered in isolation.
They also call for the creation of a national board for the local government funds that would be tasked with extending best practice, increasing transparency and acting as a liaison with the regulator.
"The board would also manage the future cost of the scheme and explore effective improvements in value for money in the areas of administration and investments," the statement reads.
"At the local level, we propose that boards provide for a greater degree of segregation between funds and administering authorities and that the potential for conflicts of interest at both member and officer level is reduced."
The proposals also suggest that members of local pension boards – essentially fund trustees in absence of such a role within the LGPS – should have a "minimum recognised level of skills".
Additionally, the national board should include not only members, employers and government, but also professional bodies.
Commenting on the proposals, head of local government at union Unison Heather Wakefield said: "While these proposals are still subject to discussion, we hope an agreement with the government can be reached in the near future."
The statement added that it hoped all proposals would be included in the forthcoming consultation.
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