Union threatens fight on pensions

Unions have insisted the pension scheme should remain

Government plans to scrap a rule that allows some council workers to retire on a full pension at 60 are facing a backlash from unions.

The UK's biggest union, Unison, said planned changes to the local government pension scheme were "detrimental" to workers and it would take legal action.

The government said the so-called Rule 85 is to be removed from next October as it seeks a "new look" pension plan.

The rule lets staff retire if their age plus years worked equals 85 or above.

'Law wrong'

Ministers say the rule, which enables older workers to retire early on full pension if they have enough service, will become illegal under new regulations aimed at outlawing age discrimination.

Local government minister Phil Woolas told MPs in a written statement "appropriate safeguards" would be put in place for those affected by the changes.

These imposed changes are an attack on scheme members Dave Prentis, Unison general secretary

And Sir Sandy Bruce Lockhart, chairman of the Local Government Association (LGA), said changes to the "rule of 85" scheme were "both needed and necessary".

But Unison leader Dave Prentis said they would mount a legal challenge as they believed both the government and the LGA "have the law wrong".

"These imposed changes are an attack on scheme members," he said.

"They have paid 6% of their salary all their working lives - they're not responsible for the state of the pension schemes."

'Diverse workforce'

If the "rule of 85" ends, all two million local government workers will work until the age of 65 by 2013.

Unions and local authority employers are to continue talks over the next six months, but Mr Woolas wants a new pension scheme in place by April 2008.

The Local Government Association has been pressing for these changes for the last 12 months Sir Sandy Bruce Lockhart, LGA chairman

"The continued affordability and viability of the scheme, as well as its acceptability to taxpayers, remains a central theme of the government's intentions," he said.

"So too is our commitment towards ensuring the scheme offers an equality proofed pension framework for all its increasingly diverse and part-time workforce.

"A flexible and attractive pension scheme for local government and employers associated with it is now required," said the minister.

The unions had wanted all public sector workers to have the same protection as teachers, nurses, and civil servants who can retire at 60.

'Not economically viable'

But Sir Sandy Bruce Lockhart, LGA chairman, said changes to the pension scheme would not cost the council taxpayer any more money.

But they would, he said, make sure that local government remained an attractive place to work in.

"The Local Government Association has been pressing for these changes for the last 12 months.

"In the long run, the current pensions scheme for council staff, particularly the 85 year rule is not economically viable for council taxpayers, employers or employees."

The developments come in a week in which a gradual rise in the state pension age to 68 was put forward as part of a major proposed shake-up of UK pensions.

The Turner report proposed the state pension age should rise gradually, to 66 by 2030, 67 by 2040 and 68 by 2050.