NAHT Pensions Campaign

What’s Already Changed? Switch to Consumer Price Index (CPI) from Retail Price Index (RPI) This could cost School Leaders £100,000 over a retirement period

Government Proposal Pay More Work Longer Get Less

Pay More: Increase contribution rate for the Teachers Pension Scheme from 6.4 per cent to more than 10% from This would result in School Leaders paying almost £2000 a year more.

Work Longer: Lord Hutton’s recommendations, if accepted, could result in school leaders having to work until 66 – or even 68 before they can draw their pension.

Get Less: final salary pension schemes to be replaced with a career average scheme Could result in school leaders receiving £10,000 less per year.

Remember.... Changes were already made to the TPS in 2007/08 These were expected to reduce the cost to taxpayers of the pension schemes by £67 billion over 50 years Audit Commission Report stated the scheme was affordable and sustainable as did the Public Accounts Committee 2011

The impact… Chris is a 36-year-old member with 14 years service accrued in the present scheme. On entering the profession Chris expected to retire age 60. Under the proposals s/he will have a normal pension age of 68 (eight years longer). Assuming s/he is currently on L7 and by retirement would reach L20, if all the proposals for change were introduced in April 2012, the potential loss in pension income would be £9,138 per year. Over a 25-year retirement period incorporating the change in indexation from RPI to CPI s/he stands to lose £402,517.

The impact … Jo, a 57-year-old member with 33 years service in the present scheme entered the profession expecting to retire at age 60. Under the proposals s/he will have a normal pension age of 66 (six years longer). Assuming s/he is currently on L26 and by retirement would reach, say, L28, if all the proposals for change were introduced in April 2012, the potential loss in pension income would be £804 per year. Over a 25 year retirement period incorporating the change in indexation from RPI to CPI s/he stands to lose £

The impact Pat, a 28-year-old member entered service after 2007 and so entered the profession with a normal pension age of 65. Under the proposals, Pat will have to work to at least 68 (NPA may have increased beyond this by the time s/he gets there!). Assuming Pat has six years service and is currently on L1 but by retirement has achieved headship and is on L25 the potential pension loss is £24,657, (Present scheme potential pension £46,195 - proposed scheme £21,538) Over 25-year retirement period incorporating the change in indexation from RPI to CPI s/he stands to lose £976,460

Conference Motion Conference calls upon National Executive to take all action necessary to defend pensions up to and including balloting on industrial action, in opposition to the changes proposed by the Hutton enquiry, as they will reduce existing and worsen future retirement benefits for the teaching profession and the public sector as a whole. NAHT believes that the proposed changes will seriously damage motivation and morale, exacerbating the already serious problems of recruitment and retention of school leaders.

The Ballot NAHT will ballot members during September 2011 We will ask if members support industrial action If yes, action will be co-ordinated with other unions for maximum impact

Get involved! Attend a branch meeting Write to your MP Talk to Governors Talk to Parents and friends Organise a local demo Vote yes in the ballot

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