A Union Perspective on the TPS Local Government Association Annual Teachers’ Pensions Conference
The NASUWT Leading teachers’ union in the UK. Has implemented national trade disputes across the UK since The NASUWT trade dispute in England and Wales is with the Secretary of State for Education. The trade dispute is over adverse changes to pensions, workload, conditions of service, including pay, pay progression and job loss. NASUWT national action involves continuous industrial action short of strike action to reduce workload and enable teachers to focus on teaching and learning – pupil and parent friendly. The NASUWT only implements strike action as a last resort, when there is no other alternative. 2
Dispute over pensions The NASUWT is profoundly opposed to Government reforms to pensions since 2011, including: Change from RPI to CPI indexation of pensions in payment; Reduction in the discount rate for unfunded public service pension schemes; Increase in pension contributions by average 50% from ; Equalisation of state pension age with teachers’ normal pension age. The change to CPI indexation and the reduction in the discount rate has wiped £ hundreds of billions off the value of teachers’ pensions now and in the future. Reduction in the discount rate has led to notional deficits across teachers’ pension schemes across the UK – without this, the 2007 reforms would have led to surpluses. 3
Growing crisis The reward package for teachers has suffered unprecedented cuts since Teachers’ pay has fallen by 14.7 per cent in real terms without taking the pensions contribution increases into account; Workload has soared; Teacher professionalism and autonomy have been undermined; Pensions have been worsened. This has led to a growing crisis in teacher supply: Between 2002 and 2010 social partnership saw an unprecedented improvement in teachers’ working conditions and educational standards; Now – teacher morale is at an all time low as working conditions plummet. 4
NASUWT priorities for the TPS Pensions should be part of a reward package which recruits and retains teachers. The link between the state pension age (SPA) and the normal pension age (NPA) must be broken – the pension age cannot continue to increase. The discount rate should not be reduced further - this will lead to further notional deficits in the UK teachers’ pension schemes. All teachers, including agency teachers, should be entitled to join the TPS. The ‘no frills’ teachers’ pension, without the use of scheme flexibilities (purchasing faster accrual or buying out the actuarial adjustment) should give a decent pension at a fair pension age; A progressive employee contribution tiering structure should be maintained to minimise opt-outs; Discrimination should be ended in the TPS. 5
Ending discrimination The provision of adult survivor benefits remains discriminatory Benefits for widows married before retirement – backdated to 1 April Benefits for widowers – backdated to 6 April Benefits for civil partners and same sex spouses – backdated to 6 April Benefits for co-habiting partners - backdated to 1 January The NASUWT campaigns for full equalisation backdated to CPI only cost of living adjustment for teachers with breaks in service of more than 5 years (as opposed to CPI + 1.6%) reinforces the gender pensions gap. 6
DfE Teachers Working Longer Review The Teachers Working Longer Review (TWLR) will report to the Secretary of State in September 2016 and will: consider possible options to mitigate the implications of teachers working longer; provide evidence for Government reviews of the state pension age (SPA) and the link between the normal pension age (NPA) and SPA in public sector pension schemes. The NASUWT does not accept the increase in the teachers’ pension age and has engaged with the review on this basis. The NASUWT is using the TWLR to argue for: improved working conditions; vastly improved access to flexible working for all teachers; a complete change in culture in the way older teachers are treated. 7