Employers deny risk to pension scheme

The Employers’ Organisation for Local
Government (EOLG)has denied a story in the national press that
claims the government is planning to replace the local government
pension scheme with a cheaper alternative, which could result in
“lower pensions for millions of staff”.

EOLG executive director Charles Nolda said the
story, which appeared in the Daily Mail on 6 November, was

“It is true that there is currently an officer
group, led by the Department of Transport, Local Government and the
Regions, which is looking at all aspects of the pension scheme,”
said Nolda in a letter to all local authority chief executives sent
after the publication of the article.

“It is at a very early stage of its work and
no report has yet been made from the group to ministers. But it is
highly misleading to say that benefits of serving staff might be at
risk, since they cannot be worsened within the existing legal

The letter added: “The policy of the [EOLG] is
that a statutory defined-benefit occupational pension scheme is a
key part of local government’s remuneration package and should be

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