Saturday, 11 December 2010

Pay more, work longer, get less

As a member of the NUT I received the message below from union general secretary Christine Blower. There's potential for industrial action by teachers over the issue of pensions, which could even become the focus for co-ordinated action across much of the public sector.

'I'm writing to update you on the NUT's campaign to defend teachers' pensions.

The Government wants you to:

Pay More
A 3% rise in contributions would cost NQTs up to £50 a month and other teachers much more.

Work Longer
Pension ages could rise to 65 for all, then even higher. Most teachers will find the prospect of working beyond 65 unthinkable.

Get Less
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 Make sure you play your part in defending your pension!'


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