Press Association
Thursday December 1, 2005 10:18 PM
Deputy Prime Minister John Prescott will anger unions when he ends an early retirement scheme for local government employees.
The so-called 85-year rule allows council workers to retire on a full pension from age 51 provided they have been employed for 34 years.
That will be scrapped by Mr Prescott in a written Commons statement.
Union representatives of the two million council employees and their local authority bosses will have to thrash out a new deal.
Sir Sandy Bruce Lockhart, chair of the Local Government Association, said the changes were "both needed and necessary".
"The key aspect of this decision is that any changes to the pension scheme will not cost the council taxpayer any more money while at the same time making sure that local government remains an attractive place to work in," he said.
"The Local Government Association has been pressing for these changes for the last 12 months.
"In the long run, the current pensions scheme for council staff, particularly the '85 year rule' is not economically viable for council taxpayers, employers or employees."
The rule which allows those whose ages added to their length of service adds up to 85 to retire on a full pension was already under threat from Brussels.
Unions have insisted it should remain but Government sources argue it discriminates against women, who are likely to have taken jobs later.