Council Pensions Costs Up 11.4 per cent

Council Pensions Costs Up 11.4 per cent

Local authority pension schemes have seen average funding levels increase by 11.4 per cent since 2004.  Preliminary results of a survey covering 54 of the 88 English and Welsh local authorities revealed mean funding levels had risen from 74.8 per cent in 2004 to 83.3 per cent last year.  The survey also showed the average rise in employer contributions was around 1 per cent of payroll – a rise to be implemented by 2010.

Despite an overall improvement in funding levels, there were wide variations between different types of schemes.  The 4 metropolitan schemes in the survey posted mean funding levels of 92.8 per cent and total contribution rates of 14.8 per cent of payroll, the 12 London Boroughs had mean funding of 84.6 per cent and total contribution of 20.8 per cent and the 6 Welsh authorities had mean funding of 75.8 per cent and total contribution rates of 19.7 per cent.  

Our view

The costs of our central and local government pay packages including pension funds are out of control.  High pay, high pensions and high sickness.  There is no accountability to the private sector that essentially pays for all public sector services.

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