Prime Minister David Cameron today gave a spirited defence of plans to reform public sector pensions condemning what he called a 'minority of unions' who are planning strikes on Thursday.
Speaking at the LGA's Birmingham conference Mr Cameron said there were 'misconceptions' about plans to reform public sector pensions, adding: 'Reform is essential, our proposals are fair on the taxpayer and on public sector workers.'
He warned that 'the pension system is in danger of going broke' because people were living longer. Iin £2009 public sector pensions were £32 billion, an increase of a third over 1999.
In the first speech ever to be given by a Prime Minister to the LGA conference he insisted that if the government failed to reform the pension system it would only make it unviable in the future. Current plans are to increase contributions to those earning over £15,000 and to base pensions on career average rather than final salary.
But he insisted it would still remain a defined benefit scheme, adding: 'This is not about breaking up public sector pensions. It's about making them affordable in the future. I'm absolutely resolved to deal with this issue and committed to seeing it through.'
The funded Local Government Scheme is separate to discussions about the public sector pensions such as the civil service which are paid by the taxpayer.
