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NEWS • VIEWS • INFORMATION • ADVICE


Teachers’ pensions ‘affordable, sustainable and viable’

In a further move to defend teachers’ pensions, the NASUWT has also submitted a robust response to an independent review into public sector pension schemes.

The current system is sustainable and affordable and must be protected, the NASUWT has stated in its evidence to the Hutton Review.

In June 2010 the Coalition Government commissioned Lord Hutton to undertake a structural review of public service pension provision. An interim report was published in October arguing the case for change and short-term savings in respect of public service pensions.

The NASUWT does not believe any review of public service pensions is necessary and has submitted detailed evidence arguing its case to the independent commission reviewing pensions.

Further points made by the Union in its evidence include:

the reforms and cost-sharing arrangements agreed to public sector pensions in 2007 should be given time to take effect and will, in time, ensure the long-term affordability and sustainability of the teachers’ pension schemes;
the final salary pension scheme acts as an important aid to recruitment and retention, which will be seriously damaged if teachers’ pensions are reformed;
cost-sharing and capping mechanisms which were introduced as part of the 2007 reforms, mean that the teachers’ pension scheme is of low financial risk to the taxpayer;
the concept of a flexible pension age that would adjust automatically to future changes in longevity is unnecessary. Any changes to pension age should only be implemented after full and thorough consultation with teacher unions;
suggestions that employees should meet half the cost of their pensions are groundless. The current ratio of 2:1 employer to employee contributions is proportionate and represents a higher employee contribution than most other public sector schemes;
statistics show that the rate of opt-outs from the teachers’ pension schemes rose sharply when contribution rates were increased in 2007. Any further rise in contributions risks a further increase in withdrawals, which would jeopardise the future security of the teachers’ pension scheme.

"The NASUWT does not believe any review of teachers’ pensions is necessary and has submitted detailed evidence arguing its case to the ‘independent’ commission reviewing pensions."


What you say about pensions

An online opinion survey of members on pay and pensions has attracted thousands of responses and demonstrates the growing anger that teachers and other public servants are being unfairly targeted by the Coalition Government. Over 10,000 teachers responded.

The survey found that:

the majority of respondents were opposed to any increase in their pension contributions;
most felt their pay and pensions were being unduly attacked by the Coalition Government;
a significant number stated they would consider withdrawing from the teachers’ pension scheme if contributions were increased;
there was concern that the changes would make it more difficult to plan for a secure retirement;
many teachers’ stated they were worried about their ability to absorb the cuts to their pay and pensions which are being imposed on the profession.

Chris Keates, General Secretary of the NASUWT, said: “Lord Hutton’s Final Report on public service pensions is not due until March and only when the budget is announced will it be clear exactly what the Coalition is planning to do. However, continuing on this course will adversely impact on recruitment and retention and lead to low-paid public service workers, including younger teachers burdened with greater student debt, pulling out of the scheme. Staff will become demoralised and demotivated and the quality of service provision will diminish.

“The Coalition has been warned.”


What you can do

Lord Hutton will publish his final report on public sector pensions in March, but in the meantime, the NASUWT will be continuing to lobby against any change to public service pension schemes. Members can play an important part by:

consulting the NASUWT website for more information on pensions. The NASUWT’s submission to the Hutton Review can be found at www.nasuwt.org.uk/PensionsEvidence
contacting your MP as a matter of urgency to argue against any change to existing provision or increase in contributions and seeking their support.


RPI to CPI – calculate its effect on you

Members have been using the online ready reckoner to calculate how the change from the RPI to the CPI will affect them.

The calculator provides a forecast of the final value of your pension and the cumulative loss incurred as a result of the change to the CPI.

Get your forecast at www.nasuwt.org.uk/RPI to CPI.