PUBLIC SECTOR PENSIONS (No.3)

Motion Text

That this House notes that proposals by Government Ministers run the serious risk of making public sector pension schemes unsustainable; further notes that increasing contributions and reducing the value of pensions could result in significant numbers of scheme members opting out, which will leave many without adequate pensions provision; further notes that in the case of the local government pension scheme this will have significant consequences for investment capacity within the economy; further notes that despite the reports about gold-plated pensions, most public sector employees retire with fairly modest pensions; further notes that changes that result in a deterioration of public sector schemes will impact most on women, who account for two-thirds of public sector employees; further notes that 65 per cent. of women in public sector pension schemes receive pensions below 6,000 a year; further notes that the average for a woman working in local government is 2,800 whilst in the NHS it is 3,500; further notes that there is support from all parties for ensuring that anymodifications to the schemes leave them sustainable for the long term; further notes that there is broad recognition that the costs of the schemes should be shared fairly between employers, employees and the taxpayer; is concerned that the goal of maintaining schemes is being jeopardised by the need for short-term savings; is furtherconcerned that such an approach will hasten the race to the bottom on pensions; and urges Government Ministers to conduct meaningful negotiations immediately to secure the sustainability of the schemes.