Union calls for higher pension contributions from top council staff

Public services union GMB has called on the Local Government Minister John Healey to seek a new council employee pension contribution band of 10% for workers earning more than £100,000 a year.

At present each of Rochdale Council's four executive leaders (a fifth position is currently vacant), earn more than £100,000 so would have to pay £10,000 of their salaries into the Local Government Pension Scheme.

GMB is also seeking a lower contribution for the lower paid to provide a fair reform of the pension contribution rates.

Banded contributions from 5.5% to 7.5% were introduced last year, so lower earners pay less to participate in the pension scheme than higher earners.

Brain Strutton, GMB National Secretary for public services said: “Salary drift overall has meant that the LGPS is receiving slightly more from members than was predicted. Using this and the income generated by a new 10% band, we believe that the 5.5% contribution currently paid by those whose whole time equivalent earnings are under £12,000 could be moved upwards to cover more lower earners. This is a sensible move in the current climate.”