Shropshire Council considering changes to pensions
Thursday 15th December 2011, 10:59AM GMT.
Shropshire Council chiefs are looking into changes to the authority’s pension arrangements which could lead to more employees dropping out of the scheme.
Officials have to fill a £76 million black hole in it budget because of Government cuts and is considering a number of options to save money in the pension scheme.
A report outlining the council’s response to proposals to increase employees’ contribution rates says lower paid workers are likely to opt out of the scheme, possibly pushing up contributions for others.
The report said: “Proposed changes to the pension scheme are contentious and have triggered industrial action in the past where reduced benefits or increased employee contributions are proposed.
“Increases in contribution rates will inevitably result in some employees opting to leave the pension scheme.
“This is especially the case in Shropshire in the context of real term reductions in pay in the region of 11 per cent for staff arising from the two year increment freeze and pay reductions.”
The Government has given local authorities two options. Option one would see an increase in employee contributions. Option two would see a slightly lower increase in employee contributions but with less cash given back in return. Unions are to meet in the new year.
Most Commented
- Clampdown on Shrewsbury chuggers
- Bishop's gay marriage views do nothing to support bible teachings
- Letter: Alcohol price plans annoy me
- Planners ordered to stay on Newport visit bus
- Letter: Angered by close encounter of the furred kind
- Letter: No sense in overseas job adverts
- The Bleak Old Shop of Stuff doesn't raise a smile
Shropshire Star on Twitter
Keep updated with the latest breaking news and content on our Twitter feed.
Lifestyle
Interactive Dining Out map
Hundreds of reviews by the Shropshire Star and Express & Star's teams to help you decide where to eat.
Entertainment
All the film reviews
Before you plan a trip to the pictures, get our critics' verdicts on all the latest movie releases.
OUR NEW APP
Get the new Shropshire Star app
Download the Shropshire Star’s new app to your iPad or iPhone to get one week of access to our digital newspapers absolutely FREE.
shropshirestar.com
Popular sections
Useful links
