UK needs more houses and infrastructure and LGPS funds invest in these on a strictly commercial basis but latest proposals are all about raiding council worker’s pensions and that simply is not on says GMB.
GMB, the union for public sector workers, responded to the proposal from the Future Homes Commission that Local Government Pension Scheme (LGPS) finance a £10 billion Local Housing Development Fund. The Commission says that ”An independently-managed £10 billion Local Housing Development Fund would kick-start the scheme and would be financed and owned by the largest Local Authority pension fund.” See notes to Editors for press report on the Commission report.
Brian Strutton, GMB National Secretary for Public Services, said “It is time for politicians and others to recognise that these funds are the pension savings of council workers not a pot of gold to pay for projects government and the banks don't want to touch.
Over 4.5 million current and former council workers have £150bn of their pension savings tied up in the LGPS. This has to be properly invested to cover the future cost of their pensions and must not be used by politicians or anyone else to plug the failure of the government or the banks to support house-building and infrastructure.
The Future Homes Commission has said the LGPS should invest £10bn in new house-building and recently the National Association of Pension Funds called for the LGPS to invest in infrastructure projects.
GMB agrees that the country needs more houses and better road, rail and utility networks. LGPS funds already invest in these on a strictly commercial basis - but these latest proposals are all about raiding council worker’s pensions and that simply is not on.
We have recently agreed to reform the benefits of the LGPS and to control future costs to ensure it remains affordable but if the funds are raided for political purposes that deal will break down."
“HANDS OFF” COUNCIL PENSIONS FUNDS WHICH ARE WORKERS SAVINGS TO PAY FOR THEIR RETIREMENT SAYS GMB
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