News Release 2005/0073:
18 March 2005
It is the Government's belief that all those who keep our vital public services going deserve safe and secure pensions.
With an issue of so much importance to so many people, it helps no one that there have been misunderstandings and suspicions of these reforms. We have listened to concerns and recognise the need to get this right for the long-term. Rather than rush and risk getting the policy wrong, we want to ensure we get it right and carry the people affected with us. What we all want is an affordable long-term settlement which is fair to current and future generations. The Deputy Prime Minister, John Prescott MP, said:“Following constructive dialogue on the Local Government Pension Scheme, I have decided, with the agreement of all parties concerned, to establish a tripartite committee, which I will chair. The key stakeholders will consider and negotiate the long-term future of the Local Government Pension Scheme. “It is my clear intention to revoke at my earliest Parliamentary opportunity, subject to statutory consultation, the Local Government Pension Scheme (Amendment) (No.2) Regulations 2004 with retrospective effect: no Scheme members will be disadvantaged. It is my intention also to begin consultation on new Regulations, which will ensure the continuing solvency of the Scheme. “I will be meeting the employers and the unions as soon as possible to discuss a Programme of Action and Terms of Reference with nothing ruled in or ruled out.”
The Department for Work and Pensions have also issued a Government Statement on Public Sector Pension Reform available at www.dwp.gov.uk/mediacentre/pressreleases/2005/mar/penref1803.asp