Con Dem proposals place LGPS at risk

Heather Wakefield, UNISON National Secretary for Local Government, writing for the Public Finance blog, reacts to the belated acknowledgement by Tory Grandee, Baroness Eaton, that the viability of the LGPS is being placed at risk by Government proposals for a 3% increase in employee contributions:

‘the LGPS can currently meet its future obligations for the next 20 years and is invested throughout the UK and global economies. If – as looks very likely – many of our members opt out of the scheme if contributions increase, UNISON and a growing number of local authority treasurers and fund managers believe that it will cease to be viable. That may be the Chancellor’s desire, but the fall-out will land on the state in the form of benefit payments and on the economy as a major source of investment disappears.’
http://opinion.publicfinance.co.uk/2011/02/why-eatons-in-a-pensions-mess-by-heather-wakefield/