Public service union Unison has voiced its concern with an informal consultation on housing group Calico’s potential exit from the Local Government Pension Scheme, it has been reported.

Union members have been angered by The Calico Group’s plan to review its pension arrangements in an attempt to reduce its deficit, This is Lancashire said.

The group’s deficit payments to the scheme have surpassed £250,000 a year, with a pension liability of £12m. As a result, Calico bosses have said they plan to make pension changes in order to maintain the “strongest long-term position”.

Calico is to informally consult housing staff on the possible departure from the LGPS, it announced earlier this month. Currently, one in ten staff across The Calico Group are members of the LGPS, with most staff in other pension plans.

The Calico Group chief executive Anthony Duerden said: “Whilst the deficit is not an immediate problem for Calico, we are mindful of the ongoing efficiencies we need to make in order to meet the government’s national rent reductions without cutting important services for tenants.

“It’s clearly important to take all opinions on-board before any decision is made, and we are consulting everyone who is part of this pension scheme.

“Our main priority is to ensure that our business is in the strongest long-term position, which will protect services for thousands of customers, and jobs for our staff across the region.”

Nonetheless, Unison North West regional organiser Dan Smith, stated: “We fear that the new pension arrangements will have a significant negative impact on our members’ retirement income.

“We are not convinced that this cost-cutting proposal is necessary.

“We are meeting with Calico to insist on a proper process of consultation.”

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