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Your Pension Your Ballot

Your Pension Your Ballot. GMB Presentation 2011. What you get from the LGPS. Pension based on your salary at retirement 1/60 th salary for every year worked Option for you to trade pension for cash lump sum on retirement Benefits to your family when you die

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Your Pension Your Ballot

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  1. Your Pension Your Ballot GMB Presentation 2011

  2. What you get from the LGPS Pension based on your salary at retirement 1/60th salary for every year worked Option for you to trade pension for cash lump sum on retirement Benefits to your family when you die It’s a good scheme, we need to defend it Mary works for 20 years full time, her salary at retirement is £14,000 so her annual pension is £4,667

  3. Scheme in context LGPS is one scheme made up of 101 locally managed pension funds – that’s where your retirement savings are held £165bn in assets – money invested in shares, property and government bonds £4bn a year more goes into the scheme than is paid out 5m people are saving or have saved for their retirement through the LGPS LGPS is different from other public sector pensions which are paid by central government

  4. Government attacks Cut pension indexation from RPI to CPI Scheme value slashed by more than 15% Osborne Pension Tax £1bn raid on LGPS members What’s Next? Reduced benefits Later retirement

  5. Osborne Pension Tax Increase in member contributions of 3.2% by 2014 Protection for lowest paid so moderate earners pay considerably more Part timers likely to miss out on protection as it only applies to those whose full time equivalent earnings are low No benefit to the scheme – £1bn being taken by the Treasury

  6. What this means for you Part timers beware! If you earn £10,000 a year but work half hours (50% of a full timer’s hours) your full time equivalent earnings in the table above are £20,000… This means your contribution would increase by £320 if a flat rate 3.2% increase is applied or £550 if the ‘low paid’ are protected.

  7. What this means for the LGPS Members leaving the scheme 39% if flat rate increase is applied 53% if lowest paid are protected Fund finances in crisis This level of members leaving would have “a serious and detrimental impact on the Scheme’s future sustainability and viability” Margaret Eaton, Tory head of the LGA This matters for everyone – all are at risk – including former scheme members and pensioners

  8. Recent developments Government claim to recognise issues GMB has raised Scheme specific talks BUT £1bn raid remains Government aren’t negotiating, they’re planning to impose changes

  9. There is an alternative… Changes to the LGPS already introduced are set to save more than £2bn over the next few years Sensible reforms could be discussed by unions, employers and government to manage costs and keep the LGPS affordable to taxpayers and members We want the right to negotiate, not to be dictated to, government is refusing to engage

  10. Perfect storm • £1bn tax means an increase in member contributions of 50% taking the average to 9.7% • Retirement age to increase to 68 • Reduction in pension – employers suggest reducing the accrual rate to 1/70th

  11. What this would mean for you • Example member aged 45, working full time, earning £18,500 • Looking forward they could expect to contribute £100 a month for a pension of £6,167 at 65 or £8,645 at 68 • The same member will have to contribute £150 a month for a pension of £4,493 at 65 or £6,079 at 68 • They’ve paid in 50% more but receive around a third less

  12. Time to act The GMB Pensions Ballot starts on 31st October and closes on 16th November 2011 Get non-members to join our campaign by joining GMB www.gmb.org.uk/join Check your membership details are up to date www.gmb.org.uk/login Keep up to date with the campaign www.gmb.org.uk/pspc Wednesday 30th November 2011 Defend Your Pension Day When you receive your GMB ballot: vote YES to defend your pension vote YES for industrial action

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