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Your pension


 


 


Work to 68, get paid less


 


As if making teachers work until 68 wasn’t enough, the Government is raising pension contributions next month, cutting your take-home pay. Nick Kirby explains.






The Government’s intention to make you work until 68 continues, and from next month teachers face a pay cut.


As part of the plan to make public sector employees pay for the recession, the Department for Education is introducing banded pension contributions. The table below shows the 2012-13 increase. Part-timers’ contributions are based on a full-time equivalent salary, so a teacher working a 0.5 contract earning £18,000 would pay the £36,000 rate of 7.6 per cent.


The Government plans further increases to 2015. This could lead to teachers earning more than £40,000 pa paying over 10 per cent. But all teachers will suffer, especially those paying off student loans. The Union opposes these increases.


Current position


At the time of going to press, the NUT, NAHT, NASUWT, UCAC and UCU had not signed up to the Government’s proposals, which would make teachers pay more, work longer and get less. The ATL has signed, subject to the views of its membership.


The NUT will not accept that teachers should work until 68, pay 50 per cent more for their pensions by 2014-15 and get less in retirement. A survey was sent to all members in February asking whether they support further industrial action on 28 March. Make sure you return it by 14 March saying ‘yes’ to action.


We have also launched, with the NASUWT, an e-petition to persuade the Government to enter genuine negotiations with us about our pensions. To sign it visit www.teachers.org.uk


This is a fast-moving situation. You can find the latest campaign material, including guidance on the proposals, at www.teachers.org.uk/pensions  Find out how much you stand to lose by visiting www.teachers.org.uk/pensionscalc It’s vital that we succeed – teachers can’t work until they are 68!


Pension increase


Public sector pensions will be increased by 5.2 per cent this April in line with the consumer prices index (CPI). If it was still linked to the retail prices index, it would have risen 5.6 per cent.


RPI-CPI judicial review


The NUT continues to oppose the switch to the CPI for uprating pensions, and is awaiting the outcome of its appeal. An Appeal Court hearing took place on 20-21 February but the outcome was not known at the time of going to press.





Local Government Pension Scheme


The Government has agreed to propose one set of reforms to the LGPS from 2014. The details on the future of the LGPS can be found at www.teachers.org.uk/node/13911


 


Proposed rise in your contributions


Salary band                        2012-13 rate             Increase


 Up to £14,999                   6.4%                        0%


£15,000 - £25,999             7.0%                       0.6%


£26,000 - £31,999             7.3%                       0.9%


£32,000 - £39,999             7.6%                       1.2%


£40,000 - £74,999             8.0%                       1.6%


£75,000 - £111,999           8.4%                       2.0%


Over £112,000                 8.8%                       2.4%


The rates apply to your entire salary. 


 


 


• Nick Kirby is NUT Principal Officer, pensions

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