John Clancy and David Bailey have blogged about the enormity of the wrong to the West Midlands council tax-payer by the LGPS.
Mike Olley
This is not news to this blog, it’s a smouldering issue that’s not going on; it’s a big scandal that has not been addressed and infuriates people outside the pension bubble.
The LGPS needs to get a grip on its responsibilities and return un-needed money to councils so council tax payers get the services they have paid for. The LGPS pension fund does not need to be over-funded, indeed it is a scandal that the Wolverhampton is bust while its pension scheme has an £11bn surplus (see blog by Clancy and Bailey).
Surpluses and deficits are immediate for council treasurers but abstract for the LGPS who can and should manage its finances over generations.
How Clancy and Bailey see the LGPS
Clancy and Bailey may be a bit harsh for pension folk. They are followed up by Mike Olley on Linked in who writes to pension people- with the same message
There is no “prudence” in holding back money that has been paid into a pension scheme unnecessarily by ordinary people though high council taxes. That high council taxes leave Birmingham bereft of the services council tax payers rightfully expect is shameful. But when the shame of lack of services could be righted by the return of money that should not have been taken and is not needed by the pension funds, then there is a scandal.
Professional Pensions is right to pick up on this and pension people have a chance to have their say to ensure that the LGPS do not continue to sit on dead money.
In this week’s Pensions Buzz, PP wants to know if councils should offer Local Government Pension Scheme contribution holidays to fund services.
It is not enough to sit on our hands and pretend that this is not our problem. What is happening in the West Midlands is a disaster for pension’s reputation everywhere
