U.K. Begins Pensions Consultations

The U.K. government has started consultations on raising the employee contribution rate to the local government pension scheme.

The U.K. government has started consultations on raising the employee contribution rate to the local government pension scheme, Professional Pensions reports. The government aims to save £450 million in April 2012 and another £450 million a year later. The increased contributions will come from staff earning more than £15,000. Those earning up to £21,000 will see a 0.6 percentage point increase in the first year and the employees earning between £21,000 and £32,000 will see contributions rise to 8.3 percent of salary by 2014-15. The consultations will end on Jan. 6, 2012, and the changes will come into effect from April 2012.

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