Pension scheme warning issued

Any reforms to the Local Government Pension Scheme (LGPS) must put the interests of public sector employees first, the UNISON public services union has warned.

Last month, the government announced the creation of pension “megafunds” as part of “the biggest set of pension reforms in decades” that would unlock billions of pounds of investment in new businesses and infrastructure and local projects.

The reforms will be introduced through a new Pension Schemes Bill in 2025 and will consolidate defined contribution schemes and pool assets from the 86 separate LGPS authorities, mirroring arrangements in Australia and Canada.

UNISON assistant general secretary Jon Richards said the government was right to focus on driving fairer economic growth across the UK. But he said that when it comes to proposed changes to the LGPS: “It’s crucial the voices of scheme members — including council workers, school support staff and many others delivering public services — are central to any changes.”