Joint union strike team response to the unilateral removal of the Rule of 85 Print E-mail
Tuesday, 04 April 2006 11:52
The trade unions are extremly disappointed by the statement to the House of Commons last week laying the stratutory order to abolish the Rule of 85 from October this year with only limited protection.  The members of the LGPS have shown their total opposition to this move in the industrial action taken this week, in which hundreds of thousands of trade union members went on strike,
Instead of seeking a resolution of the dispute, the decision of John prescott to press ahead with the laying of the order now is provocative, premature, unnecessary and will inflame the situation.  On Wednesday, talks involving the trade unions, Phil Woolas and the LGA took place with a view to seeing whether a way forward could be agreed.  The discussions were also attended by Brendan Barber, General Secretary of the TUC.  In these discussions the trade unions proposed:


  • That the Government lay an order now, limited to bringing in changes required from April to reflect the new Inland Revenue regulations including the commutation provisions.  This would represent a saving to the scheme of over £3 billion.
  • If the Government decided to abolish the Rule of 85 from October 2006 and order could be laid in Parliament prior to the Summer recess, i.e. 27 July 2006 to take action prior to this date would be premature and unhelpful.  If accepted, this would provided some four months for negotiations to reach agreements on outstanding issues.  The trade unions proposed that the negotiations be held on the following basis that:
  • Long-term protection of the benefits of existing scheme members be an option, something already agreed.
  • 50% of the savings arising from changes to the scheme be available for protection and improved benefits in a new scheme, something already agreed.  Theses savings would be over an agreed period and would include those arising from the abolition of the Rule of 85 for new members and the commutation arrangements.
  • A process be agreed to resolve quickly any actuarial difference over the costing of the changes.
The Local Government Association was not prepared to sign up to the compromise put forward by the trade unions.  it continued to insist that the Deputy Prime Minister lay the Order now to abolish the Rule of 85 from 1st October with only limited protections.  if this happened, they would then agree to talks on a nre scheme with nothing ruled in or ruled out, talks which could take over one year.


The industrial action has been prompted by the Governments intention to abolish the Rule of 85 unilaterally with only limited protection for existing scheme members.  our aim as joint trade unions is to find an agreed way forward that allows for change and also security for existing members of the scheme, something that has been achieved for members of all other public sector pension schemes.  laying the Order today is completely unnecessary, provocative and premature.

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