Laura Sharman 27 June 2016

Warning Brexit could devalue council pension schemes

Warning Brexit could devalue council pension schemes image

The value of the Local Government Pension Scheme could fall as a result of last week’s decision to exit the European Union, councils leaders have warned.

The Welsh Local Government Association (WLGA) said a prolonged collapse of the stock market – the FTSE 100 index was down 0.4% this morning – could cause ‘huge’ problems for the pension scheme.

Cllr Bob Wellington, leader of the WLGA, said: ‘As a responsible employer local government also has a duty to highlight potential difficulties for our workforce. For example, any prolonged collapse of the stock market will signal huge problems for the £13bn Local Government Pension Scheme in Wales which is fully funded and based on market investment.

‘With an actuarial valuation due this year it is vital that confidence is returned as soon as possible, otherwise millions of pounds will be lost for the schemes pensioners.’

The WLGA also warned the outcome of the referendum will have a ‘seismic change’ on public policy in the UK, and is backing calls for a revision of the Barnett formula.

‘The WLGA wholeheartedly supports the call of the first minister for a revision of the Barnett formula and a new financial settlement for Wales,’ said cllr Wellington.

‘We also fundamentally oppose any emergency budget that sets out further cuts and renewed austerity with councils once again bearing the strain.’

SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker - SGO & Connected Person Assessment Team

Essex County Council
Negotiable
Special Guardianship Order (SGO) & Connected Person Assessment Team The SGO and Connected Person's Assessment Team (North & Mid) first started in Apri England, Essex, Chelmsford
Recuriter: Essex County Council

Economy & Business Service Manager 

Harborough District Council
£49,350 to £52,368
Looking for an experienced manager who understands public sector responsibilities with the proven ability to deliver our ambitions. Market Harborough, Leicestershire
Recuriter: Harborough District Council

Head of Income and Financial Inclusion

The Royal Borough of Kensington & Chelsea Council
£48,800 - £66,000 per annum
You’ll have excellent interpersonal and communication skills, with a substantial track record of successful performance management. Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Advanced Practitioner

The Royal Borough of Kensington & Chelsea Council
£33.600 - £45,400 per annum
Looking for an Advanced practitioner Social workers to join the Adult social services in the... Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Adult Principle Social Worker

The Royal Borough of Kensington & Chelsea Council
£36,600 - £49,600 per annum
The successful candidate will be a passionate and skilled communicator with ability to work alongside operational Social Workers and... Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how public sector organisations can unlock the hidden value in their land, and why a new approach to construction could help boost the outcomes of the Government’s One Public Estate programme.

The December issue also considers why learnings from ancient cities could provide the key to promoting wellbeing in the modern built environment. It also contains a case study on how the London Borough of Westminster has provided high quality care for the elderly alongside a block of luxury apartments.

Register for your free digital issue