68 is too late

You Didn’t Cause Any Crisis

They Did

He Did

Don’t Let Them Make You Pay

The Real Agenda The Government is making the biggest real terms cuts in public spending since the 1920s Most of the savings in education will come from cutting the pay and pensions of teachers and other staff The total value of public sector pensions is less than 2% of GDP and will fall in the medium term Public sector schemes have reviews to ensure that they pay for themselves from employer and employee contributions in the long-term Most local government workers have pensions of less than £5000 per annum The average teachers’ pension in payment is less than £10,000; only 5% are over £20,000

Teachers’ Pensions Affordable Our Scheme was reformed to reduce costs in 2007 normal pension age raised to 65 for new entrants higher contribution rate of 6.4% for all cost-sharing agreement limits employers’ contribution to 14% Contributions and benefits balance in the longer term, as an actuarial review cancelled by Govt. was about to show cutting our pensions is a political choice, not an economic necessity

Our Pensions Are Affordable Source: Hutton Report Note: The fan chart shows how the projections would be affected by altering assumptions about productivity growth, public service workforce growth and life expectancy

Current Teachers’ Scheme Some service before 2007 PENSION – Normal Pension Age 60 (80ths) Final Average Pay (UPS3): £36756 Membership: 35 years 36756 x 35 years = 16080 Pension 80 36756 x 35 years = 48242 Lump Sum (tax free) 3/80 These are at Age 60

Current Teachers’ Scheme Service only from 2007 PENSION – Normal Pension Age 65 (60ths) Final Average Pay (UPS3): £36756 Membership: 35 years 36756 x 35 years = 21441 60 At age 65 Pension : £21441 Lump sum: £1 commutation for £12 At age 60 (actuarially reduced): Pension: £16145 Lump sum: £1 for £12

Indexation Teachers’ Pensions have always gone up each year in line with increases in the Retail Price Index From April the Government decided to increase them in line with the Consumer Price Index The CPI is deliberately constructed to produce lower apparent inflation On average it measures inflation at 0.7% less per year Over the average lifetime this knocks £70,000 off the value of a £20,000 per annum pension

Work longer… Normal Pension Age of 65 for future service for all teachers as soon as the scheme can be changed “Increase the member’s Normal Pension Age in the new scheme so that it is in line with their State Pension Age” i.e. 66 by 2020 or earlier (for teachers who are 57/58 now) 67 by 2036 or earlier (for teachers who are 41/42 now) 68 by 2046 or earlier (for teachers who are 31/32 now)

Get less….A Lot Less! Indexation - RPI to CPI reduces the total value of your pension by 13-14% over an average lifetime Raising Normal Pension Age If you are 50 year now on UPS3 and in the scheme before 2007 then retiring at 60 you would lose £1800 per year “Career average” not “final salary” pension Depending on how it is done, could reduce pensions of promoted teachers by half on its own

And More Bad Things Other points in Hutton’s final report 1. Exclusion of some groups from public sector schemes, who might include teachers in privatised services and private schools 2. Making employees such as teachers pay more so that employers and Government can reduce their contributions 3. Valuing pay-as-you-go schemes such as ours differently to justify making us pay more 4. Worsening public sector pensions so that it is easier for private contractors to bid to run public services

Pay More! George Osborne had already a assumed a 3.5% contribution increase phased in from 2012 as part of his Budget package to reduce public spending Effect of 3.5% extra £61 per month for NQ teachers £102 per month for UPS3 teachers Unions have been invited to say how this could be achieved! Tiered contributions, as in local government?

Effect of Pay Freeze and Increased Pension Contributions 2.3% Pay rise September 2010 – inflation 5.1% 0% pay rise September 2011 – inflation expected to be 3.5% 3.5% extra pension contributions phased from April 2012 0% pay rise September 2012 – inflation expected to be 3% Net result: 12.8% fall in real income while at work Pension changes likely to reduce average income by a further 20% in retirement

Lifetime Cost – Up to £350,000 Work out your own cost on the NUT Pensions Calculator www.teachers.org.uk

An Injury To All Teachers are not the only ones whose pensions are under threat Nor is it only other public sector workers The RPI to CPI change will hit the state pension Everyone will be affected by the accelerated rise in the state pension age Most private sector schemes are likely to be worsened by the RPI to CPI change The NUT is working for the widest possible campaign

Growing Support For Action 3 of the 4 Biggest Unions in the Teachers’ Pension Scheme have already decided action is necessary UCU have already balloted successfully and had a day’s strike ATL is balloting with us NUT Conference and Executive united in calling a ballot NAHT and ASCL threatening to ballot NASUWT say no ballot while TUC/Govt talks continue, but may ballot in autumn

Shouldn’t We Wait For The Talks? Originally just about how to share out the increased contributions Government agreed to widen them but is still insisting on the contribution rise, the RPI/CPI change and the whole Hutton package These talks are set to end in June It is highly unlikely that they will give us what we want If we do not ballot now, then balloting rules and school terms mean we could not act to influence the Government before November This delay would weaken any impact we may have

Our Ballot Timetable With ATL Ballot Papers Dispatched 17th May Ballot Closes 14th June Likely Strike Day Thursday 30th June UCU and PCS likely to join us There may well have to be more action in the autumn

Fighting Back To Do Now – check latest information and email your MP - www.teachers.org.uk/pensions Take the advice on how to lobby MPs Get your colleagues to do the same Show them the calculator Hold a meeting in your school Offer to do it jointly with your ATL colleagues Make sure our membership records are up to date Invite teachers to join us

Members Should Be Angry They Should Act On Their Anger This Is A Very Big Injustice That Has To Be Fought Now Or We Will Pay A Heavy Price For The Rest Of Our Lives