UNISON, Unite and the GMB, the three main unions in local government have criticised the government for imposing a three percentage point increase in pension contributions on local government workers. Local government pensions are paid out of funded schemes and so do not form part of the public sector's deficit. The unions are particularly concerned about the impact of the increase on low-paid workers and the risk that many will withdraw from the scheme.
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And at > GMB
And at > Unite
Local government unions react to 3% pension contribution increase
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Increase to employee contributions could undermine local government pensions
Unions in local government have been joined by Conservative politicians in warning that an increase to employee contributions by as much as 3% of earnings could threaten the viability of the scheme. It is possible that many workers could opt out of the scheme if required to pay more and if this is combined with the numbers leaving the scheme because of job cuts, then this could pose a real problem in terms of future funding. [Read more at > UNISON->http://www.unison.co.uk/news/news_view.asp?did=6604] [And at > GMB->http://www.gmb.org.uk/newsroom/news_archive/2011/jan_2011/900m_stealth_tax.aspx
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