UNISON is urging the Scottish Government to act to protect the pensions of workers in the Local Government Pension Scheme from greedy employers who are withdrawing from the scheme – and taking millions of pounds with them.
The LGPS is in a very healthy condition – which has led unscrupulous employers to withdraw from the scheme – at which point they are paid “exit credits” ie a cash windfall. These are eyewatering sums.
UNISON Scotland has written to Shona Robison the Cabinet Secretary for Finance and Local Government pointing out that these are not “credits” in any meaningful sense. Employers have not overpaid; the scheme has invested wisely and now greedy employers are trying to cash in.
Such actions damage the LGPS and undermines the future pensions of workers who are removed from future Local Government Pension Scheme membership.
The UNISON Scotland letter is below
