OFFICE OF THE DEPUTY PRIME MINISTER

Local Government Pension Scheme (Amendment) Regulations 2006

The Minister for Local Government (Phil Woolas): My Statement to the House of Commons on 28 March re-affirmed our commitment to secure the continued affordability and viability of the Local Government Pension Scheme and to provide secure, equality-proofed pensions for its existing and future membership.

A statutory instrument will be laid before Parliament today to remove the 85 year rule from the Scheme from 1 October 2006, in order to comply with Council Directive 2000/78/EC. The regulations will also provide protection for existing Scheme members who will be 60 and satisfy the 85 year rule by 2013 and will introduce significant and well supported flexibilities into the Scheme’s legal framework to reflect the simplified tax regime provided by the Finance Act 2004.

In the light of discussions held yesterday with the trades unions and local government employers, we are calling on both sides to begin talks, to start now on a nothing ruled in nothing ruled out basis, to address the protection of existing Scheme members, the recycling of savings, and the development of a more equitable Scheme.

The Government stands prepared to introduce further amendments before the Summer Recess to update the Regulations in light of any agreed proposals which emerge from the talks between the trades unions and local government employers.

The Government is committed to good quality pensions for local government workers without placing an unfair burden on taxpayers.