June 2011

Briefing for Activists

How our Pensions are reported

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,

Governor, Bank of England

This is the scary position used to justify public service cuts

Public Sector Debt

In 2007 the UK had 2nd lowest debt in the G7. Then we bailed out the banks …

The Real Picture

Lord Hutton says we should …

Pay More

Work Longer

Get Less

Paying More … 50% More!

Government cuts to funding equate to just over a 3% contribution increase on average for members.

If you pay 6%, a 3% addition is really a 50% increase!

Increases to be phased in

40% in 2012-13 40% in 2013-1420% in 2014-15

Contribution Increases

This is a tax to repay debts that were used to bail out the banks

None of the money will go into the schemes It threatens the whole system – if enough members

opt-out It unites all public sector workers in or have access to

a scheme It could allow public sector unions to co-ordinate

action We need to consult members & prepare for a ballot

for industrial action

Working Longer …

From November 2018 the State Pension Age will be 65 for both men & women

For those now between 42 to around 57 it will be 66 (April 2020)

For those between 34 and 42 it will be 67 (2034-36)

For those now 34 or younger it will be 68 (2044-46)

Getting Less …

The Government decided that public service pensions will increase by Consumer Price Index (CPI) instead of Retail Price Index (RPI) from April 2011

CPI is on average 0.7% per year lower than RPI

Lord Hutton says this represents a 15% cut in benefits

A member receiving an average public service pension of £7800pa will be £117 worse off this year

An end to Final Salary schemes?

Hutton stated that final salary schemes “disproportionately” favour high flyers

He has recommended switching to a career average scheme for public service workers by the end of the next parliament – i.e. 2015

Crucially he has stated that each year’s pensionable pay should increase in line with increases in average earnings up to when you leave or retire

What is a Career Average scheme?

This is a scheme that bases benefits on average earnings over a scheme membership rather than final salary

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 and UNISON is not necessarily against a CARE scheme as long as it’s not a clear cost-cutting exercise

Our Campaign Objectives

Prepare members to resist attacks on public sector pensions

Support negotiators to achieve the best outcome possible & prepare for industrial action

Make sure that UNISON members gain a greater understanding of public sector pension schemes – remove the pension jargon fog

Campaign Structure

National Project Team

Regional lead officers & organising teams, Regional lay member structures

Branches to have Pension Champions & Contacts – in regional & national networks

Pension Champions & Contacts

Pension ChampionsMake sure union briefings & information on changes to

public sector pensions are understood by the branch, workplace pension contacts & members.

They will take a lead role in supporting contacts, developing local campaign initiatives, making sure that the branch & members are prepared to take action to protect public sector pensions.

Pension ContactsDistribute material, take actions when requested. They

will be the workplace feedback link between members & the campaign/negotiators.

Talk to & recruit non members.

What Are The Key Issues We Face?

Budget measures 2011 – change to State Pension flat rate of £140

Change to pension increase calculations – RPI/CPI

Scheme contribution increases Retirement age increases Benefit changes to career average Fair Deal – TUPE transfers and pensions

and … Lack of public sympathy!

An end to Fair Deal - making it cheaper to privatise

Fair Deal is the agreement that enable TUPE transferred staff from public services to either remain their pension scheme or be provided with a “certified” broadly comparable scheme

Government is looking to scrap Fair Deal because of the relative cost to companies bidding for public service contracts

This would leave TUPE transferred staff at the pensions mercy of private contractors

Hutton - Other issues

Increasing the share of that cost that scheme members pay, while limiting employers’ contributions

A complete overhaul of the State Pension

New governance in all schemes – national bodies

Representation on LGPS investment boards

Incentives to merge LGPS funds Privatisation of scheme administration

Where can you find everything?

National Campaign

http://www.unison.org.uk/pensions/protectour.asp

Region Campaign

http://www.unison.org.uk/southeast/pensions.asp

Advice on Pensions

http://www.unison.org.uk/pensions/index.asp

The Campaign Needs You

Pension Champions in every Branch

Pension Contacts in every Workplace

Government Threats ...

”The first explicit acknowledgment by a coalition minister that the government could legislate to prevent widespread strikes.”

June 30th

On Thursday, June 30, nearly a million workers could be on strike together, from the PCS, UCU, NUT and ATL unions.

This includes teachers and education workers in schools, colleges and universities.

Talks Could Trigger Strikes

Industrial action ballot will be triggered if talks breakdown on 28th June.

We are on the road to sustained industrial action this Autumn.

The Government says we should …

Pay 50% More

Work Years Longer

Get 50% Less

We say …No, No, No