Laura Sharman 06 October 2015

Council workers’ pensions are not ‘politician’s playthings’ warns union

Plans to invest local government pension schemes in major infrastructure projects have been criticised as too risky by trade union GMB.

Yesterday, chancellor George Osborne announced plans to merge 89 pension funds into six new regional funds to increase investment in infrastructure.

However, GMB warned that council workers’ pensions should be invested as ‘efficiently as possible’.

Brian Strutton, GMB national secretary, said: ‘Combining council workers' pension funds will not lead to more investment in UK infrastructure unless government underwrites the rate of return available.

‘The only reason more of the £200 billion of Local Government Pension Scheme (LGPS) assets are not invested in infrastructure is because the risk outweighs the returns.

‘Mr Osborne needs to remember these are council workers' pension savings that need to be invested as efficiently as possible, they are not to be used as politician’s playthings.’

Unison also warned that any changes to how pension funds are invested should be done to get the best return for local government staff. It is calling the costs of pooling the funds to be fully transparent, and for decisions to include members.

Unison general secretary, Dave Prentis, said: 'The chancellor shouldn’t use our pension funds as a convenient way of making up for the infrastructure investment that no longer happens. Nor should they be used as replacement capital for the government’s privatisation programmes.

'PFI has been a disaster for both the pension funds investing in it and the public authorities who are now having to pick up the costs. Yet another abuse of our members’ pension funds cannot be allowed to happen.'

Four-day working win image

Four-day working win

Cllr Bridget Smith, leader of South Cambs DC, reflects on the results of the council’s four-day week trial and calls on Labour to back the shorter week.
SIGN UP
For your free daily news bulletin
Highways jobs

Contract Administrator

Telent
Competitive
Reporting into the Administration Manager you will provide Administrative Support to the Contracts, controlling documentation and day to day administration in support of the Admin Manager, Contract Manager and Service Delivery Manager. England, Kent, Chatham
Recuriter: Telent

Social Worker - Assessment & Intervention (A&I), South Essex

Essex County Council
£36101.0000 - £48622.0000 per annum
Assessment and Intervention (A&I) These teams are the gateway through which children, young people, parents/carers and other agencies gain access to Children and Families services. England, Essex, Basildon
Recuriter: Essex County Council

Traffic Installation Technician

Telent
Company Van + Overtime Options
Telent are looking for a Traffic Installation Technician to join the Traffic Signal Engineering team - this is a FIELD BASED role that will predominantly cover the Salisbury / Wiltshire and Hampshire regions. England, Wiltshire, Salisbury
Recuriter: Telent

Cabinet Assistant

Essex County Council
£24394.0000 - £28699.0000 per annum
Cabinet AssistantFixed Term, Full Time£28,699 per annumLocation
Recuriter: Essex County Council

Adults Social Worker - West Essex

Essex County Council
£36101.0000 - £48622.0000 per annum + Flexible Working, Hybrid Working
This position is open to Experienced and Newly Qualified Social Workers (NQSW). The starting salary for a NQSW is £33,885 per annum, rising to £36,10 England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.