LGA responds to Hutton Review

Published on Friday, 11 March 2011 14:52
Posted by Scott Buckler

Responding to Lord Hutton’s review of public sector pensions, Baroness Margaret Eaton, Chairman of the Local Government Association, said:


“Everyone agrees that public sector pension schemes need to strike a balance between what is fair to staff and affordable for the taxpayer, and we will look closely at the detailed recommendations Lord Hutton has made in his report.

“We support a system where pension payments are linked to career average earnings. It addresses the inherent inequalities of the current final salary arrangements which favour those who progress through the salary scales and, in particular, those who get a promotion just before retirement.

“It is pleasing that Lord Hutton has listened to our core arguments that the scheme should be linked to average earnings, and also that there should be no cap on pensionable pay.

“Lord Hutton has recognised that there are significant differences between the funded Local Government Pension Scheme and the unfunded schemes provided in other parts of the public sector.

“We will consider closely the points Lord Hutton makes about the administration of the LGPS. As well as being fully funded locally, the LGPS is governed and administered by locally elected members representing the interests of council taxpayers. The LGPS is fully transparent and more accountable than any other public sector pension scheme.”

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