1. Act Now to Protect Your Pension
Autumn 2010

2. The threat to our pensions
John Hutton’s report sets out various options for change – all will cut our pensions
George Osborne: ‘the public sector pension bill is unsustainable’
Nick Clegg: ‘unreformed gold-plated pension pots … just not fair, not affordable’
The Government has decided to impose higher contributions even before Hutton’s final report – this is the start of the attack on our pensions

3. Hutton proposals Pay more Work longer Get less
higher and/or tiered contributions?
Government now threatening a 3% rise
Work longer
pension age of 65 for all teachers?
maybe even higher in the longer term?
Get less
indexation change from RPI to CPI already proposed by Government
“career average” scheme?

4. The case against change (1)
Teachers’ pensions are fair!
The average teachers’ pension in payment is less than £10,000; only 5% are over £20,000
Cuts will hit women teachers hardest
Teachers are saving for retirement – this should be commended not condemned

5. The case against change (2)
Teachers’ pensions are affordable!
TPS already reformed to reduce costs
normal pension age now 65 for new teachers
higher contribution rate of 6.4% for all
cost-sharing agreement limits employers’ contribution to 14%
Costs will fall as planned – cutting our pensions is a political choice not an economic necessity

6. Pay more… Higher contributions? Effect of 3% extra
to make short term savings
to make employer and employee contributions more equal
Effect of 3% extra
£40+ per month for NQ teachers
£70+ per month for UPS3 teachers
Tiered contributions as in local government?

7. Work longer… NPA of 65 for all teachers? Effect of NPA of 65
pension accrued in future would only be available in full at age 65
Effect of NPA of 65
50 year old on UPS3 who still retires at 60 would lose £1500 per year
Even higher NPA as State pension age rises to 68?

8. Get less… Indexation - RPI to CPI Effect of RPI to CPI
affects all members, planned for April 2011
breach of election promise – and accrued rights?
Effect of RPI to CPI
a teacher retiring on a £20,000 pension will lose £70,000 over their retirement
“Career average” not “final salary”?
pension based on pay across whole career
“fairer” pensions?

9. The real pension problem
Two-thirds of private sector employees are not in any employer-backed pension scheme
87% of private sector final salary pension schemes are closed to new members
Cutting public sector pensions won’t help private sector workers in retirement - we need decent pensions for all!

10. What you can do Email your local MP
go to - ask your MP to oppose pension cuts and RPI to CPI
the link to 5 friends - ask them to use it
Support other NUT and TUC campaigning
Talk to colleagues and friends - your pension is fair, affordable and does not need to be cut!

11. Remember!
In the NUT and other unions saw off Government threats to slash our pensions
We succeeded by standing together and being prepared to take action
We may need to stand together once again to defend our pensions