Value of public sector pensions down 25% - time to stop the rot‏

The Nuffield Foundation has published a report on public sector pensions which confirms that recent reforms have cut the value to a typical employee by 25%: http://www.nuffieldfoundation.org/sites/default/files/
files/20101123_The_future_of_the_public_sector_pensions_final_report.pdf

As the John Hutton led Independent Public Service Commission continues to receive evidence on further reforms to public sector pensions, the Pensions Policy Institute drafted report flags up options for government to consider - including amending final salary schemes, introducing career average or moving to defined contributions.

UNISON’s initial submission to the Commission stated that the union ‘believes that public service schemes are affordable and sustainable’ and detailed work is being undertaken on the union’s second stage submission: http://www.unison.org.uk/acrobat/B5195.pdf

However, it is important to raise awareness of union members to the growing threat to existing pension arrangements posed by the Con Dem government - be it from reduced benefits or further increases in employee contributions.

Chancellor Osborne’s decision back in the June Budget to use the lower Consumer Price Index rather than the Retail Price Index to calculate future pension increases will lead to a drastic reduction in pension income and has met with little or no resistance from unions, despite being potentially unlawful: http://unisonactive.blogspot.com/2010/08/pensions-indexation-imposed-change.html  The same sleight of hand has been applied to most state benefits.

How much longer are we going to accept the unacceptable without engaging our members and putting up a fight to defend our hard earned pension entitlements?

Joanne Barnes