Protect Our
Pensions
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The crisis is not of our making
• "The price of this financial crisis is
being borne by people who absolutely
did not cause it, now is the period
when the cost is being paid, I'm
surprised that the degree of public
anger has not been greater than it
has.“
Mervyn King – addressing the Treasury Select Committee
Public Sector Pensions - What Are The Key
Issues We Face?
Change to the way pension increases are
calculated – RPI/CPI
Scheme contribution increases
Retirement age increases
Benefit changes to career average
Fair Deal – TUPE transfers and pensions
15/03/2016
ATTACK NUMBER 1
THE CHANGE FROM RPI TO CPI
22nd June 2010 – Emergency Budget outlined the
change from RPI (Retail Price Index)
to CPI (Consumer Price Index)
What does this mean to me?
CPI is typically on average 0.7% per year lower than
RPI, therefore your pension will now increase
at a lower level.
15/03/2016
IMPLICATIONS OF CPI
CPI
April 2011
3.1%
RPI
April 2011
4.6%
•Even Govt. Advisers say this change will mean an
average cut of 15% in pension benefit
•As a result of the 2010 Emergency Budget LGPS
members are likely to lose a quarter of the value of their
pensions over the next 25 years.
15/03/2016
ATTACK NUMBER 2
Contribution Increases
The Government announced a cut in funding to our
pension schemes of £3.8 billion a year by 2014/15
What does this mean?:
This means that you will be paying just over a 3.2% contribution
increase into your pension –
50% MORE THAN YOU CURRENTLY PAY!
THIS IS EFFECTIVELY A GOVERNMENT TAX OF £4
BILLION TAX ON PUBLIC SECTOR PENSION SCHEMES
15/03/2016
ATTACK NUMBER 3
Move away from a final salary scheme
Lord Hutton stated in his Interim Report on
7th October that final salary schemes
“disproportionately” favour high flyers.
He has recommended switching to a career
average scheme by the end of the next
parliament = 2015.
15/03/2016
What is a career
average scheme?
 This is a scheme that rather than base benefits on the final
salary you retire on it calculates them on your average
earnings during your scheme membership
 Such a scheme could potentially benefit members whose
annual salary increases are generally less than the index used
to increase pensionable pay and who are unlikely to benefit
from regular promotions
 There is no detail yet so UNISON cannot comment on it. The
CARE scheme must not be a cost-cutting exercise
15/03/2016
ATTACK NUMBER 4
INCREASING THE STATE PENSION
RETIREMENT AGE (SPA)
 From November 2018, the SPA will be 65 for men
and women.
 From April 2020, the SPA will be 66 for both men
and women.
 Under current legislation the SPA is due to rise to
67 between 2034 -2036 and 68 between 2044 2046
15/03/2016
 For those now 34 or younger it
will be 68.
 For those between 34 and
42 it is 67.
 For those between 42 to
around 57 it will be 66.
15/03/2016
A Summary of What Would Happen if
They Get Away With This
 Contribution increases
 A move from RPI to CPI for increasing pensions
 A possible move away from a final salary scheme
 Increasing retirement ages
 A worsening position for TUPE transferred
members
15/03/2016
So, You
Want us to
Pay More?
Work
Longer?
to
Get Less?
15/03/2016
LET THE FAT CATS PAY FOR THEIR OWN MISTAKES
15/03/2016
JOIN UNISON IN ITS
CAMPAIGN TO SAVE OUR
PENSIONS
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