Presentation on theme: "SAVE OUR PENSIONS! September 2010. Hutton Commission Hutton Commission signals attack on public service pensions. Nick Clegg: ‘can we really ask them."— Presentation transcript:
SAVE OUR PENSIONS! September 2010
Hutton Commission Hutton Commission signals attack on public service pensions. Nick Clegg: ‘can we really ask them (private sector workers) to keep paying their taxes into unreformed gold-plated pension pots? It’s just not fair, it’s not affordable’. George Osborne: ‘the public sector pension bill is unsustainable’. NUT opposes Commission as Commission not necessary and Government has already prejudged outcome.
Hutton Timetable Hutton will produce two reports: Interim Report to look at case for cost savings within 3 years – written by end of Sept NUT response and joint response for teachers’ unions available at Final report in time for Budget 2011 May be indicative proposals in time for Oct 20 Comprehensive Spending Review or any time before Budget 2011.
Necessary changes already made Teachers’ Pension Scheme has already been reformed in 2007 to make it sustainable in long term Normal pension age of 65 for new teachers Higher contribution rate of 6.4 per cent for all. Cost-sharing arrangements introduced put a 14 per cent limit on employers’ contribution (currently 14.1 per cent). Scheme’s next actuarial valuation due now. Any changes should be decided by Scheme’s own valuation.
Teachers’ Pensions are fair Average teachers’ pension in payment is less than £10,000. Reward for lifetime of work in graduate profession. Only 1 per cent of teachers’ pensions are for £30,000 or more. Further cuts will have greatest impact on women due to lower average earnings and build up of service.
Attack on pensioners Coalition plans to switch index-linking of pensions from Retail Prices Index (RPI) to Consumer Prices Index (CPI) from April Breach of promises made during election campaign. Affects existing and future pensioners. CPI has been on average 0.8 per cent a year lower than RPI during past ten years. For teacher with £20,000 pension, adds up to £70,000 difference over 25-year retirement
Private sector pensions Real UK pension problem = private sector. 87 per cent of private sector final salary schemes closed to new members. Two-thirds of private sector employees not in any employer-backed pension scheme. Need to level up private sector pensions – not cut public service pensions.
What you can do Write to your local MP and ask them to defend public service pensions Use the letter facility on NUT website to write to your MP opposing CPI indexation Talk to colleagues – your pension is fair and does not need to be cut