Act Now to
Protect Your Pension
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
• Pay more
• 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?
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
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
• Higher contributions?
• to make short term savings
• to make employer and employee contributions
• Effect of 3% extra
• £40+ per month for NQ teachers
• £70+ per month for UPS3 teachers
• Tiered contributions as in local government?
• NPA of 65 for all teachers?
• 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
• Indexation - 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?
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!
What you can do
• Email your local MP
• go to www.teachers.org.uk/notocuts - ask your
MP to oppose pension cuts and RPI to CPI
• email 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!
• In 2005-6 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