The Great Pensions Robbery

Robert Maxwell was a crook who stole from his employees' pension funds - but he had nothing on George Osborne who, within weeks of becoming Chancellor had raided the future pensions of millions of workers, in the public and private sectors, of billions of pounds. He did this by changing the future basis of uprating our pension benefits from the Retail Price Index (RPI) to the Consumer Price Index (CPI).

This dramatic move had been in the manifesto of neither party to the Coalition of millionaires - indeed it directly contradicted promises made by all three main parties before last year's General Election.

Estimates of the cumulative loss for those of us not yet retired range upwards from 15% (or almost one pound in every six which we had been promised for the rest of our lives).

This is one element of the Government's attack upon pensions which not only applies across the whole public sector but also unites public and private sector workers. It is a move they show no sign of even considering stepping back from.

This is an opportunity to try to use the e-petition site in the interests of working people rather than for reactionary knee jerk populism - the petition is at http://epetitions.direct.gov.uk/petitions/1535.

All trade unionists, and indeed everyone who believes promises should be kept, should sign!

Councillors speak up for Local Government Pensions

Today, some useful information about the benefits of the Local Government Pension Scheme went up on the intranet. It is a timely reminder of the benefits of joining the scheme. Anyone who is not already in the scheme should seriously consider joining. Apart from the security of a fully-funded final-salary defined benefit pension, membership of the scheme also includes life assurance, effective from the date of joining. 

Although most of us were not very happy with the changes to our scheme in 2008, those changes ensured that the Local Government Pension Scheme would be sustainable long-term.

However, the changes the government are now proposing could put the entire scheme at risk. Even the Tory-controlled Local Government Association can see this is the case and are worried. If our contributions increase by 50% (from 6% to 9% of earnings) many people will drop out, placing the future of the scheme in jeopardy.

At the Full Council Meeting on Monday 11 July, Oxford City Councillors will be debating a motion which defends the Local Government Pension scheme and attacks government plans to increase contributions. Oxford City UNISON thanks the Labour councillors who have agreed to put this motion to the council and hopes councillors of all parties will support this motion. The text is below.

Public Sector Pension contributions increase

(Proposer – Councillor Mike Rowley)

 

Council notes with grave concern the decision of the coalition government announced in the Comprehensive Spending Review (CSR) to impose a 3.2% contribution increase on members of the Local Government Pension Scheme. Scheme average member contributions will increase from 6.6% to 9.8% next year. Additionally the value of all local government employees’ pensions will be reduced on a cumulative basis by the change in the basis of indexation to the Consumer Price Index (CPI)

Council shares the views expressed by the Local Government Association (LGA) in its letter to the Chancellor of February 16th 2011 where it pointed out that this level of increase will inevitably lead to a massive increase in opt-outs from the pension scheme by lower paid employees who form the majority of the local authority workforce.

Our pensions under attack!

You may remember, because it wasn't long ago, that the 2008 changes to the Local Government Pension Scheme included scrapping the "85 year rule" and the lump sum and increasing contributions. These changes meant a 14% saving to the Local Government employers and resolved the issue of long-term affordability. However, they are coming for us again...

From next month, our pensions will be uprated in line with the Consumer Prices Index (CPI) measure of inflation, instead of the Retail Prices Index (RPI). The CPI does not include housing costs and so is not an appropriate measure of inflation to apply to anyone who lives in a house. Or flat. Or a tent with ground rent.

This change, which may seem like a minor adjustment, will see our pensions reduced by 15% (according to Hutton).

Also, from April 2012, it is proposed that our contributions increase by a further 3.5% of salary. Prior to 2008, the contribution rate was 6%. Now it is 6.5% for someone earning between £19,000 and £32,000. From April 2012 it would be 9.5%, an increase of 58.33% on the pre-2008 rate.

Hutton also wants us to work still longer. Work longer, pay more, get less.

But the scheme is now affordable in the long term, thanks to the changes in 2008. These changes are not about our pension scheme. The ConDems (with the help of Hutton) want to plunder our pension fund to plug the gap left by the bail out of the banks.

Public sector workers, who are taking responsibility for their retirement by paying into their occupational pension schemes (and thereby reducing reliance on the state in their old age) should not be punished for the bankers' crisis.

Yet another reason to march on the 26th March!

If you haven't already, book your FREE seat on the UNISON coach now by contacting the UNISON office on 01865 252672 or emailing us.