Hutton Enquiry into Teachers� Pension Scheme

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					     Act Now to
Protect Your Pension
      Autumn 2010
  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
          Hutton proposals
• 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
              Pay more…
• Higher contributions?
  • 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?
             Work longer…
• 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
  to 68?
                 Get less…
• 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 - 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

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