The National Association of Pension Funds (NAPF) cautiously welcomed the agreement over the Local Government Pension Scheme (LGPS) between the Local Government Association and trade unions.
NAPF policy director Darren Philp said: “Importantly, this agreement protects the lower paid from having to pay more into their pension. The last thing we want is for those at the bottom of the pay scale to lose out. This deal will allow employers and unions to finally start communicating with scheme members about the changes to their pension, reassuring them that the LGPS will remain a good quality pension scheme.”
But Philp said that the clock is ticking as the new rules are set to take effect in 2014, so it is crucial that the consultation moves forward swiftly. He added: “In reforming public sector pensions we need to avoid a race to the bottom. The LGPS scheme needs to be sustainable and affordable in the long term and we need to ensure that these proposals will be a lasting settlement.”