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UNISON strike ballot 3 rd November 2011

Proposed Changes to Local Government Pension Schemes (LGPS) Steven Lewarne. UNISON strike ballot 3 rd November 2011. Proposed changes to Local Government Pension Schemes (LGPS) Public sector pension myths and facts Timetable What you can do about the proposals Questions.

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UNISON strike ballot 3 rd November 2011

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  1. Proposed Changes to Local Government Pension Schemes (LGPS) Steven Lewarne UNISON strike ballot3rd November 2011

  2. Proposed changes to Local Government Pension Schemes (LGPS) Public sector pension myths and facts Timetable What you can do about the proposals Questions This Presentation

  3. Pay more – up to 50% more contribution Retire later – for some it will be 68 years Receive less – average salary not final salary Lose protection – for privatised jobs Lower annual increases – CPI inflation measure replaced RPI Pension changeS PROPOSAL PROPOSAL PROPOSAL PROPOSAL IMPLEMENTED

  4. Average contribution of salary will increase by 3.2% from 6.0% to 9.2% No contribution increase for those earning less than £15,000 per annum Contribution increase of 1.5% for those earning up to £21,000 per annum Maximum contribution increase of 6% for high earners Recent update (7th Oct 2011):http://www.communities.gov.uk/news/newsroom/2004266 Pay more

  5. Proposal to link the Local Government Pension Scheme (LGPS) to the State Retirement Age (SRA) Aged between 42 and 57?Retire with pension at 66 years old Aged between 33 and 42?Retire with pension at 67 years old Younger than 33?Retire with pension at 68 years old Retire later

  6. An end to final salary schemes Switch to an average salary scheme Current accrual rate of 1/60thof final salary for every year worked.For example: A pension of 50% of final salary could be received after 30 years service Accrual rates could be reduced to 1/90th for every year worked Receive less

  7. Under current provisions, private sector firms have to establish a ‘broadly comparable’ pension scheme The proposal includes an end to the ‘Fair Deal’ scheme that protected the pensions of public sector workers outsourced to the private sector under TUPE Lose protection

  8. Annual increases were calculated using the Retail Price Index (RPI) until April 2011 Now calculated using the Consumer Price Index (CPI) This change will reduce pension benefit values by an estimated 8.5% by 2017 Over the next 15 years thiscould reduce pensionpayments by £84 Billion. Lower annual pension increase IMPLEMENTED

  9. Public Pension myths and facts “Public Sector Pensions Are Gold-Plated” • The average public sector pensionis £7,800 per annum- Hutton Report (10th March 2011) http://www.hm-treasury.gov.uk/indepreviw_johnhutton_finalpress.htm

  10. Public Pension myths and facts Public Sector Pensions Are Unsustainable • “Public pensions are affordable” -Public Accounts Committee • Changes made in 2007-08 will reduce scheme costs by £67 Billion over 50 years http://www.parliament.uk/business/committees/committees-a-z/commons-select/public-accounts-committee/news/pensions-report/

  11. Public Pension myths and facts New Pension Income Will Make Schemes Stronger • All additional revenue will be returned to the Treasury

  12. Public Pension myths and facts People are Living Longer • Local Government Schemes were revised 3 years ago – costs are now 25% lower • Life expectancy has increased but not by 25%

  13. Public Pension myths and facts “We’re All InThis Together” • These proposals are the equivalent of an average 3% tax on public sector pension scheme members.

  14. Public Pension myths and facts The Proposals HaveWidespread Support • Government Heath Secretary, Andrew Lansley (Conservative MP) described the proposals as ‘inappropriate’ and ‘unrealistic’ http://www.telegraph.co.uk/news/politics/8658168/Andrew-Lansley-attacks-governments-public-sector-pension-reforms.html

  15. UNISON ballot opens 11th October, closes 3rd November Possible strike action on 30th November End of 2011 – discussions on detail of new scheme completed January 2012 – Ministers’ approval sought for next steps February 2012 – Parliamentary stages for amending regulations April 2014 – target date for regulations being laid setting out new scheme April 2015 – target date for new scheme starting Timetable

  16. Support UNISON, encourage non-members to join Vote in the national ballot Write to your Council Leader, Councillors and MP What can you do?

  17. Pensions are effectively deferred wages. Public sector workers do not generally receive bonuses and therefore the stability of their retirement income is a major employment consideration. Pension changes are effectively an enforced contract change. If these proposals are implemented, will this be the last attack on public sector pensions? Finally…..

  18. Any Questions?

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