Pensions Meeting 7 August 2013 UNISON Scotland Scottish

Pensions Meeting – 7 August 2013 UNISON Scotland Scottish LGPS 2015 Dave Watson Head of Bargaining and Campaigns

Background UNISON Scotland ØPublic Service Pensions Act ØMust renegotiate to CARE and new pension age ØConsequential changes ØOptional changes ØGovernance ØImplementation April 2015

Base Line Scheme UNISON Scotland ØFocus on main benefit – accrual rate ØKeep contributions stable v Pay restraint, economy, NI contributions 2016 ØCurrent Scottish LGPS – accrual rate 60 ths ØTypical public sector CARE scheme 50 ths ØE&W LGPS - 49 ths

Accrual rate – E&W comparison UNISON Scotland ØScottish scheme cheaper v Higher cost ceiling v Higher mortality ØScottish scheme more costly v v Benefits including transition provisions Ill health retirement Death in service Older membership profile ØAffordable accrual rate 49 ths.

Variants UNISON Scotland

Other issues UNISON Scotland ØPensionable pay = total pay v Bigger pensions but pay contributions. v Employer overtime cost ØPay less, get less 50: 50 option v 50% contributions, 50% accrual rate v Contingent dependents benefits & death in service not affected v Attract new members (1/4 workforce not in) or reduce existing? ØContribution bands v Smoother Scottish system or English cliff edge

Workforce data UNISON Scotland ØSee summary report ØOverall gender split – 72: 28 ØNot in scheme: Women – 26%, Men – 21% ØHalf women part time. v Fewer in scheme as fewer hours worked ØRough age correlation to scheme membership v Exception is young men

Governance UNISON Scotland ØScheme Advisory Board v Statutory SLOGPAG ØPension Board at fund level v One or split ØFund structure – separation and number ØCost control – 2% cap ØScheme data and regulatory oversight

Next Steps UNISON Scotland ØDetailed issues to be resolved ØDraft Heads of Agreement 29 August ØCo. SLA Leaders - 30 August ØFurther pensions meeting early September ØSGLC – 12 September ØMember Ballot