Pensions Dispute - Update

Andy Lord, Branch Secretary

Government still needs to make real progress

Ministers announced concessions to union negotiators and parliament on 2 November:
 
    ·             An increase to the annual rate by which pensions grow

·             An ‘objective’ that those who are within 10 years of pension age at 1 April 2012 will not see changes to the value of their pensions or pension age.

Despite these concessions workers over 50 will be required to pay more for their pension, and get less through the CPI switch. People under 50 will still be required to work longer.
 
We are examining the effect of the new accrual rate on future pensions. But as the total cost of civil service pensions will be cut, we expect future benefits to be lower.
 
We will take a full part in negotiations with government and the civil service to try to reach an acceptable agreement.
 
While some concessions have been made, real progress is needed on the key issues: paying more, working longer and getting less.
 
Public sector unions are united in believing that the concessions are nowhere near enough.
 

Value of new schemes could fall by 20%

So far, the Cabinet Office has not made any concrete proposals for a new scheme in the civil service, but the Treasury has said:
·             A new civil service pension scheme will be introduced from April 2015

·             The new scheme will be based on a ‘cost ceiling’, lower than all the current civil service schemes – which will inevitably lead to lower benefits

·             The scheme will have a pension age linked to the state pension age – which increases from 65 to 66 in April 2020, and to 68 by April 2046.

 
The purpose of their pension cut is:
·              To raise £2.8 billion, through increased pension contributions, to pay for the deficit

·             To cut the long-term cost of public sector pensions further and deeper than the 2006 agreement – a yearly cut of about £700 million in the civil service alone

·             To reduce the cost of inflation-proofing pensions – by switching from RPI to CPI

·              To make it easier to privatise public sector jobs.

What you can do

·             Find out what you could lose by using the PCS pensions calculator

·             Support the strike on 30 November

·             Visit our pensions page for the most up to date information on pensions.

     

30 November - Your questions answered

In the run up to the co-ordinated national strike on Wednesday 30 November many PCS members will – understandably – have questions for the union.
Here are three of the most common:
 

·             Other unions are balloting over pensions, why not PCS?

In June 2011 PCS members voted for strike action over government plans to change pensions, freeze pay and cut jobs. We took strike action on 30 June using this ballot mandate.

Further action is legally covered by the ballot. PCS members who have joined since the ballot have the same rights to take part as everyone else.

 

·             Are public sector pensions affordable?

Yes. Union members agreed a deal in 2007 which, the National Audit Office said last year, “reduce costs to taxpayers by 14 per cent”.

In Lord Hutton’s review he said the cost of public sector pensions would fall 0.5% as a share of national wealth by 2060. This May MPs on the public accounts committee found no proof that pensions were not sustainable.

 

·             Some of the press are saying the strike is political. Is that true?

No. The dispute is about PCS members’ pensions, pay and jobs. These are the most fundamental bread-and-butter issues for trade unions. That is why more than 20 public sector unions are supporting the day of action over pensions on Wednesday 30 November.

For more details, and answers to other questions, see our pensions FAQs.

 

The government only offered limited concessions when it became clear momentum was building for the action on 30 November. Don’t let them divide us. Stand together and fight for fair pensions with our colleagues in other unions

 

If you have any questions around the whole of the Pensions dispute please do not hesitate to contact me