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LGPS opt outs increase

It has been report in the Financial Times that the Greater Manchester Pension Fund has seen a rise of over 50 percent of workers opting out of the scheme in the past year.

The number of opt outs rose from 773 to 1,210 for 2010 and does not include those who never chose to join the scheme in the first place.

Peter Morris, director of pensions at Tameside metropolitan borough council, which operates the Manchester fund, said that based on anecdotal evidence, workers were opting out of pension savings as real incomes were squeezed by wage freezes and high inflation.

The Hutton report on public sector pensions is due out on Thursday. It is widely anticipated that a rise in employee contributions will be recommended.