A combination of trustees, industry body figureheads and unionists told the Affordable and Sustainable Local Government Pension Scheme (LGPS) Conference that the public perception that local government schemes are struggling to maintain their funding is flawed.
Various speakers claimed local government provision is not in crisis and should become more aggressive in asserting their benefits are sustainable.
But privately, delegates argued the panel sessions were still "too cosy" and "complacent", one adding: "Initially we came to debate the sustainability of LGPS; now we’re all supposed to assume there isn’t a question of sustainability."
Another attendee stated concern that the debate would only produce "hot air: all talk and no action" following the event.
Local Authority Pension Fund Forum chairman Ian Greenwood told the audience: "The truth is there’s actually no crisis in the public sector. There is only a crisis in the chattering classes."
Chairman of the London Pensions Fund Authority Anthony Mayer also stated that the LGPS needed to get over its "willingness to change" and to have the confidence to see whether the recent round of amendments, including benefit cuts and contribution increases introduced in 2008, had worked.
"We need to get over why there’s so much [public] concern about the LGPS. There isn’t a crisis, but there’s a perception that there is," he said.
"My own hobby horse is that we must be more aggressive about the baleful consequences of FRS 17 [accounting standard].
"It’s the main reason so many private pension schemes have been closed. We should explore a more relevant accounting standard for pensions."
And Brian Strutton, national secretary for public services for the GMB union, told the conference: "Income exceeds expenditure by £4bn-5bn a year and it costs the taxpayer about £1 a week.
"The LGPS is not suited to quick-fix solutions. There’s no real crisis and there’s no need for knee-jerk reactions. The LGPS should not allow other schemes’ concerns to impact how it is run."
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