£29m paid into pension scheme by Argyll and Bute Council

Figures seen by West Coast Today reveal that the amount spent on staff pensions contributions in Argyll and Bute is 47.5 per cent of what is raised in council tax.

The data received from the council following West Coast Today’s request shows that £29,396,000 was paid in pension contributions over the past year, while £61,909,000 of council tax was raised. 

Although the council receives sizeable government grants to help fund its services, the alliance says the proportion of council tax to pension payment is a cause for concern.

Benjamin Elks, grassroots development officer at the Taxpayers’ Alliance said: "Local taxpayers will be outraged by the amount of their money going towards gold-plated nest eggs for council workers.

"As public services continue to fail, local bureaucrats enjoy pay, perks, and pensions that those in the private sector can only dream of. 

"Taxpayers in Argyll and Bute expect their hard-earned money to be focussed on frontline services and keeping council tax down."

When this concern was raised with the council its spokesperson said: “The Pensions Act 2008 requires all employers to automatically enrol employees into a workplace pension scheme and contribute towards it.

“Local authorities in Scotland offer employees the opportunity to join the Local Government Pension Scheme. The rules of this scheme are set by the Scottish Government. Employer contribution rates are set by the fund actuary, and the Strathclyde Pension Fund Office provides details of this on its website.”

The Strathclyde Pension Fund’s most recent figures show that it has 286,000 members, 146 employers and investments of £30.6 billion.

The employers participating in its fund include Argyll and Bute Council and 11 other local authorities in the west of Scotland; Police Scotland, Scottish Fire and Rescue, and Scottish Water as well as a number of universities and colleges.

And on a UK scale, local government pensions are worth trillions of pounds as pensions minister Emma Reynolds explained after the UK budget in November. 

Ms Reynolds said: “The UK pension system is one of the largest in the world – with the Local Government Pension Scheme and Defined Contribution market set to manage £1.3 trillion in assets by the end of the decade.”