A small but significant piece of good news for Labour, buried in the back of its annual report, published today.
The party’s pension fund had been sagging under a deficit of £6.6m, which may sound tiny until you remember that Labour only employs 287 staff (up from 226 a year before).
Even now, the accounts admit that a “further increase in employer contributions” may be necessary to address any persistent scheme deficits.
But the snapshot of Labour’s pension fund taken at the end of 2010 shows it with net assets of £19,000 – which will be a great relief to many.
The shift from red to black has been largely inspired by the government’s change last summer from RPI to CPI inflation on pension increases for public sector staff. Labour, although obviously a private organisation, has followed suit.
That means expected lower rises in pension payments in the future. According to Labour, “the overall impact of this is a reduction of £4.2m in the value of the defined benefit obligations“.
The bad news for Labour employees, and former employees: Your pensions will now rise more slowly than they would have done beforehand.
UPDATE: Not so long ago that senior Labour figures were criticising the original RPI-CPI switch, as Guido points out, with Ed Balls calling it part of the “biggest hit to the living standards of your (GMB) members in a generation”. (Although Balls was also referring to other things including later retirement; cuts to childcare support; the abolition of the youth jobs fund; and higher tuition fees).