Employee Rewards and Benefits News
Council pension deficit is 'going to double'
The pension deficit for local councils in England and Wales could hit £60 billion this year, according to figures unveiled by the Liberal Democrats.
According to the party's shadow work and pensions secretary Steve Webb, the figures he discovered suggested the deficit might have doubled since it was valued at -£27 billion over two years ago.
The study of pension fund managers in charge of local government pensions discovered that 83 out of 87 schemes were in deficit in 2007.
As it stands, the government is currently mulling over changes to pension funding which could see the inclusion of higher staff contributions.
Mr Webb said: "The reality is that council tax will rise but it will be capped, so services will have to be cut.
"And if budgets have to be squeezed, then education and social services are the most likely to be in the firing line."
It follows the study of the government's own impact assessment of its workplace pension reform, named the National Employment Savings Trust this year.
In it, the Lib Dems found that 42,000 employers are set to cut the contributions they make to their workers' pensions as a result of the government's new reforms.
Posted by Elizabeth Mewes
