Workers at a Welsh housing association are furious after learning of plans to exclude them from the Local Government Pension Scheme (LGPS). Staff at Bridgend-based housing association Valleys to Coast have been told the organization plans to leave the LGPS and move to a social housing pension contributions scheme based on contributions from employees and employers.

Valleys to Coast is a provider of more than 6,000 affordable homes in the Bridgend area and says the move will “ensure the long-term financial stability” of the company. For the latest Bridgend news, sign up to our newsletter here.

A spokesman said most staff were already members of a defined contribution social housing pension scheme, while others were part of arrangements made before Bridgend Council’s 2003 handover.

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However, Unison officials say this could leave workers thousands of pounds out of pocket and claim that an employee who dedicated 15 years to the company and should have received an annual pension of £19,200 under the LGPS will now receive just £13,300 a year . .

One Valleys to Coast worker said: “It’s absolutely terrifying because I predicted how much I would earn at 67 thinking I would retire with a decent pension. I doubt I will be able to retire now at 67 or that I will have to continue working. My retirement looks very different. “This is a great reward for your loyalty after years of service.”

Unison Wales regional organizer Carmen Bezzina added: “Many of these workers have dedicated decades of their lives to this cause. It is appalling that they now face a future in which they could lose thousands of pounds out of pocket. “Unison will do everything possible to reverse this decision and ensure that the staff who provide these vital services can expect a decent income after retirement.”

A Valleys to Coast spokesperson said: “We have entered into a period of consultation with a small group of colleagues affected by the review of our pension plans. These colleagues are members of the LGPS under agreements inherited after their transfer from Bridgend Council in 2003 or because they joined us shortly after the transfer. The majority of our colleagues are enrolled in the Social Housing Defined Contribution Pension Scheme (SHPS DC).

“From a business perspective, we must ensure long-term financial stability and fair benefits for all colleagues. Therefore, we are currently consulting with other LGPS members with a view to terminating this agreement and transferring them to SHPS. DC pension plan with protection of your current accumulated benefits. “These colleagues are offered our full support throughout the consultation period, including guidance from independent pensions experts.”