Dave Watson

1
Pensions Meeting 7 August 2013
Scottish LGPS 2015

• Dave Watson
• Head of Bargaining and Campaigns

2
Background

• Public Service Pensions Act
• Must renegotiate to CARE and new pension age
• Consequential changes
• Optional changes
• Governance
• Implementation April 2015

3
Base Line Scheme

• Focus on main benefit accrual rate
• Keep contributions stable
• Pay restraint, economy, NI contributions 2016
• Current Scottish LGPS accrual rate 60ths
• Typical public sector CARE scheme 50ths
• EW LGPS - 49ths

4
Accrual rate EW comparison

• Scottish scheme cheaper
• Higher cost ceiling
• Higher mortality
• Scottish scheme more costly
• Benefits including transition provisions
• Ill health retirement
• Death in service
• Older membership profile
• Affordable accrual rate 49ths.

5
Variants
6
Other issues

• Pensionable pay total pay
• Bigger pensions but pay contributions.
• Employer overtime cost
• Pay less, get less 5050 option
• 50 contributions, 50 accrual rate
• Contingent dependents benefits death in service
  not affected
• Attract new members (1/4 workforce not in) or
  reduce existing?
• Contribution bands
• Smoother Scottish system or English cliff edge

7
Workforce data

• See summary report
• Overall gender split 7228
• Not in scheme Women 26, Men 21
• Half women part time.
• Fewer in scheme as fewer hours worked
• Rough age correlation to scheme membership
• Exception is young men

8
Governance

• Scheme Advisory Board
• Statutory SLOGPAG
• Pension Board at fund level
• One or split
• Fund structure separation and number
• Cost control 2 cap
• Scheme data and regulatory oversight

9
Next Steps

• Detailed issues to be resolved
• Draft Heads of Agreement 29 August
• CoSLA Leaders - 30 August
• Further pensions meeting early September
• SGLC 12 September
• Member Ballot