Saturday, 11 December 2010
Pay more, work longer, get less
'I'm writing to update you on the NUT's campaign to defend teachers' pensions.
The Government wants you to:
A 3% rise in contributions would cost NQTs up to £50 a month and other teachers much more.
Pension ages could rise to 65 for all, then even higher. Most teachers will find the prospect of working beyond 65 unthinkable.
Switching indexation for pensions from RPI to CPI could cost you up to £70,000 or even more over your retirement.
There is no need for further pension cuts. Since 2007, all teachers are paying more, new members must wait till 65 for their pensions and cost-sharing arrangements will limit costs to Government in the long term.
Powerful new evidence from the National Audit Office and the Pensions Policy Institute shows that pensions costs are under control. The NAO declares that the 2007 changes are "on course to deliver substantial savings". The PPI calculates that, taken together, those changes and the RPI to CPI switch will cut the value of public sector pensions by around 25%.
Lord Hutton says he rejects any "race to the bottom" which would push workers into reliance on State benefits. The PPI says that any further cuts risk doing exactly that.
The NUT is building alliances. Join us at the TUC national rally in defence of pay, pensions and public services on 26 March 2011. Look out for other campaigning activities on www.teachers.org.uk/notocuts. Make sure you play your part in defending your pension!'