Oral question asked in the House of Lords, by Baroness Lockwood (Labour). It was answered on Tuesday, 21 March 2006.

Local Government: Industrial Action

Question: My Lords, would my noble friend not agree that the 85-year rule is not only discriminatory on grounds of age but also against women, given their broken employment pattern? Is that an issue that the Government might raise in their discussions with the LGA?

Answer: Yes, my Lords, that point is important. The fact is that it is an old pension scheme. Its roots are in a time when the majority of local government employees were men. Indeed, up until the 1970s, when the scheme was last reviewed, 75 per cent were men. The workforce is different now; women are the majority, and a majority are part-time. The slightly complicated 85-year rule essentially means that people can work the same number of years, but if their ages differ some will retire on a fully funded pension—if they have achieved 85 years—while others with exactly the same length of service will achieve a less well funded pension. Because women cannot build up those commitments in the workplace, they are almost bound to be disadvantaged by that. Indeed, 25 per cent of people in the local government pension scheme do not benefit at all from the 85-year rule.

Secondary information