A leading local government trade union has accused LGA chairman Margaret Eaton of a ‘socially irresponsible' approach to the sector's £100bn pension scheme, after she questioned the rising cost of public retirements. The GMB union, which represents thousands of town hall staff, accused Cllr Eaton of ‘political bandwagon-jumping' during her speech to the LGA's annual conference in Harrogate last week. Cllr Eaton asked delegates: ‘Can we really sustain what the public regard as gold plated pensions packages when it may well mean we have to cut frontline services to deliver them?' Brian Strutton, GMB national secretary, took issue with what he regards as the LGA's ‘new' stance on council pensions. ‘In ongoing discussions about the LGPS's sustainability for the future it has been the LGA's position that providing the employer contribution is stable at around 14% – it is currently 13% to 15% – the scheme is not only affordable but is actually an asset to employers. ‘Eaton now seems to be changing the LGA's tack, and the only explanation is that this is ideologically driven,' he said. Cllr Eaton's statement follows political attacks on final-salary linked public sector pension schemes by the likes of Conservative shadow chancellor George Osborne. The LGPS currently requires high employer and employee contributions to restore its financial health because of poor stock market returns during the downturn. A recent investigation by The MJ discovered some councils have also been skimming potential payments into the LGPS by retaining the majority of interest returns on joint LGPS and general fund deposits. But the LGA said the GMB had misinterpreted Cllr Eaton's speech and that she raised the issue in the context of public perceptions about taxpayer funded pension schemes. A spokesman said: ‘Cllr Eaton was referring to the wider context and did not make specific reference to the LGPS.'
