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Pensions
Stand up for your pension
The Government's attack on pensions has begun. NUT Head of Pay and Pensions Andrew Morris explains why changes to the Teachers' Pension Scheme are unfair and what the NUT is doing to oppose them.
The NUT's pensions campaign is gathering speed as we work jointly with other unions to defend your pension against higher contributions and changes in indexing contained in the Government's spending review.
Further pension cuts are unnecessary and wrong. Employee contributions to the Teachers' Pension Scheme (TPS) rose to 6.4 per cent in 2007, the pension age rose to 65 for new members, and a cost-sharing agreement was introduced. This limits employers' contributions and cuts the long-term costs to government. These changes should be given a chance to work.
Lord Hutton's public sector pension review continues. The NUT and other teacher unions have made a joint statement opposing this attack. We reject his proposed contributions increase, his suggestion that all teachers must work to 65 or more, and his proposal to move away from a final salary scheme. We also reject the change to the Consumer Prices Index (CPI), from the generally higher Retail Prices Index (RPI), for uprating.
Unfair and unjustified
Powerful evidence supporting the NUT's case emerged before Christmas. The National Audit Office (NAO) and the Pensions Policy Institute (PPI) published reports confirming that pensions costs are under control.
The NAO declared that the 2007 changes to the TPS are "on course to deliver substantial savings". It noted that cost-sharing has transferred the risks of cost increases due to improved life expectancy from the taxpayer to scheme members. The NAO criticised the Government for not using teachers' pensions to promote recruitment and retention.
The PPI calculated that the 2007 changes and the proposed move from RPI to CPI indexation will cut the value of public sector pensions by around 25 per cent. Hutton himself says the cost of public sector pensions will fall from 1.9 to 1.4 per cent of GDP over time.
The PPI says: "Any [further] reforms will require trade-offs between adequacy and affordability." In other words, further cuts risk driving workers into poverty in retirement.
Take action
Join the NUT at the TUC rally in defence of pay, pensions and public services in London on 26 March. Look out for other campaigning activities at
www.teachers.org.uk/notocuts.
Pay more
The Government wants an average 3 per cent more from public sector workers - possibly more from the higher paid. NQTs would pay up to £54 more a month and teachers on Upper Pay Spine 3 up to £90 a month.
Work longer
The demands of teaching mean the prospect of working to 65 is already unrealistic for many. Any increase beyond this would be unthinkable.
Get less
The RPI to CPI switch could cost you £70,000 over your retirement. Moving to a 'career average' rather than 'final salary' scheme without proper protection would be just a cost-cutting measure.
The NUT wants your views on pensions. Please complete our survey at
http://tinyurl.com/NUTpensionsJan10.
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