1 / 11

Act Now to Protect Your Pension

Act Now to Protect Your Pension. Autumn 2010. The threat to our pensions. John Hutton’s report sets out various options for change – all will cut our pensions George Osborne: ‘ the public sector pension bill is unsustainable’

amiel
Download Presentation

Act Now to Protect Your Pension

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Act Now to Protect Your Pension Autumn 2010

  2. The threat to our pensions • John Hutton’s report sets out various options for change – all will cut our pensions • George Osborne: ‘the public sector pension bill is unsustainable’ • Nick Clegg: ‘unreformed gold-plated pension pots … just not fair, not affordable’ • The Government has decided to impose higher contributions even before Hutton’s final report – this is the start of the attack on our pensions

  3. Hutton proposals • Pay more • higher and/or tiered contributions? • Government now threatening a 3% rise • Work longer • pension age of 65 for all teachers? • maybe even higher in the longer term? • Get less • indexation change from RPI to CPI already proposed by Government • “career average” scheme?

  4. The case against change (1) • Teachers’ pensions are fair! • The average teachers’ pension in payment is less than £10,000; only 5% are over £20,000 • Cuts will hit women teachers hardest • Teachers are saving for retirement – this should be commended not condemned

  5. The case against change (2) • Teachers’ pensions are affordable! • TPS already reformed to reduce costs • normal pension age now 65 for new teachers • higher contribution rate of 6.4% for all • cost-sharing agreement limits employers’ contribution to 14% • Costs will fall as planned – cutting our pensions is a political choice not an economic necessity

  6. Pay more… • Higher contributions? • to make short term savings • to make employer and employee contributions more equal • Effect of 3% extra • £40+ per month for NQ teachers • £70+ per month for UPS3 teachers • Tiered contributions as in local government?

  7. Work longer… • NPA of 65 for all teachers? • pension accrued in future would only be available in full at age 65 • Effect of NPA of 65 • 50 year old on UPS3 who still retires at 60 would lose £1500 per year • Even higher NPA as State pension age rises to 68?

  8. Get less… • Indexation - RPI to CPI • affects all members, planned for April 2011 • breach of election promise – and accrued rights? • Effect of RPI to CPI • a teacher retiring on a £20,000 pension will lose £70,000 over their retirement • “Career average” not “final salary”? • pension based on pay across whole career • “fairer” pensions?

  9. The real pension problem • Two-thirds of private sector employees are not in any employer-backed pension scheme • 87% of private sector final salary pension schemes are closed to new members • Cutting public sector pensions won’t help private sector workers in retirement - we need decent pensions for all!

  10. What you can do • Email your local MP • go to www.teachers.org.uk/notocuts - ask your MP to oppose pension cuts and RPI to CPI • email the link to 5 friends - ask them to use it • Support other NUT and TUC campaigning • Talk to colleagues and friends - your pension is fair, affordable and does not need to be cut!

  11. Remember! • In 2005-6 the NUT and other unions saw off Government threats to slash our pensions • We succeeded by standing together and being prepared to take action • We may need to stand together once again to defend our pensions

More Related