PENSIONS & TURNER REPORT THIS PRESENTATION DOES NOT DEAL WITH SUCH PENSION SCHEMES AS ROYAL MAIL – BT OR OTHER UNION REPRESENTED COMPANIES. IT IS A BARE BONES PRESENTATION AND LOOKS AT STATE PENSIONS IN THE PAST – NOW AND FUTURE IF TURNER IS THE FUTURE ?

AGITATION 1670s Idea of Organised Pensions Born with Scheme for RN Officers – Life Expectancy at Birth was 48. By the Start of the 20 th Century Life Expectancy was about 49 years for Women and 45 years for Men. Agitation for National Pension prior to General Election of 1885 Rev Herbert Stead – Browning hall Southwark Pensions mentioned at Election but no action 1898 – Royal Commission- 2 Million over 65

COMMISSION FINDINGS 1.3 million in want Commission finding. Nothing can be done However, 1898 – New Zealand grant pensions for over 65s 35p per week London Agent – General New Zealand speaks on issue at Browning Hall

CAMPAIGN FOR PENSION Following Browning Hall Meeting, many others followed. London, Newcastle Durham, Leeds Manchester & Birmingham

TRADE UNION INVOLVEMENT Newcastle meeting, 37 delegates from Trade Unions, 29 Co- ops 3 Trades Councils and Visitors Unanimous demand for a Universal and non contributory pension to be funded out of general taxation.

LEEDS AND MANCHESTER Leeds meeting argued that unemployment a more pressing issue, but pension argument held the day. Manchester meeting attended by 29 Trade Councils, 12 Trade Unions, & Co-ops and 3 Friendly Societies. Agreed to support Universal pensions funded out of General taxation.

BIRMINGHAM & GLASGOW Both cities held huge meetings. Glasgow meeting attended by over 200 Delegates Also large meeting in Bristol. As a result of meetings, a National Pensions Committee was elected and campaigned for pensions at 65 and 25p for both men and women.

SELECT COMMITTEE Joseph Chamberlain appoints a Select Committee to look into the demand. Baulked at the idea of a Universal pension claiming to great a demand on the public purse. 17 MP’s sat on the Committee. However, pensions now in the public arena.

THE AGITATORS Although looking for change through legislation, the agitators were mainly from the trade union movement supported by some in the churches. May 1 st 1899 Charles booth publishes a pamphlet demanding pensions at 70 with 35p for men and 25p for women

NATIONAL PENSION’S COMMITTEE Appoints a full time organiser. Fred Rogers the leader of the Vellum Binders Union. Lived in Whitechapel. A pioneer of Adult Education and President of the East London Working’s Club Began life as an errand boy.

THE BOAR WAR 11 th of October 1899 saw the outset of the Boar War. This had the effect of putting any possible legislation regarding pensions off the Political agenda. However, on the 1 st August 1908 saw the Royal; Assent for the Old Age Pensions Act.

SUCCESS But for outside agitation from workers and the church, neither the Liberal or the Tories would have enacted the Legislation. Paradox is that pensions became known as the Lloyd George. On the 1st January 1909 the Age Pensions Act of 1908 introduced the first general, non contributory system under which between 10p and 25p a week was paid from age 70 on a means tested basis.

WHO COLLECTED. Over half a million individual collected their first National Pensions collected their pension in Southwark where the agitation first began in 1885, 24 years previously The Contributory Pensions Act set up a contributory scheme for manual workers and others earning up to £250 a year. The Pension was 50p per week at 60

PENSION RISES Life Expectancy had risen for Women to 64 and Men to 59 by saw the Beveridge report which set the fundamental principle of universal provision of a Basic Pension National Insurance act introduced a contributory state pension for all.

PENSIONS Pensions, from 1948, were £1-30 a week for a single person and £2-50 for a married couple paid from age 65 for men, 60 for women National Insurance Act – graduated pension 1970 Life expectancy for Women was 74 and for Men 69

PENSIONS 1975 Social Security Act set up the State Earnings Related Pension Scheme (SERPS) which in 1978 replaced graduated pensions The Social Security Act broke the link between State Pensions increases and average earnings. If the Conservative Government of the time had not broken the link a single pensioner would now be worth around £30-00 a week more.

WHERE ARE WE NOW? Some findings from Age Audit m pensioners live below the poverty line 1.5m are malnourished or at serious risk 1.5 believe their house is to cold in winter Last year 22,000 older people died as a result of cold. 5m pensioners suffer long term illness that restricts their daily activities.

CONCLUSION A very great need to look at the Pension provision for our grander generation was but one of the conclusions of Government. A pensions Committee was set up in response to a crisis of confidence over Pension Provision.. Headed by Adair Turner Included Jeannie Drake and Professor John Hills

TERMS OF REFERENCE Were the investigating private pensions and Long term savings, advising the Government on whether there was a need to “move beyond the voluntary approach to private pension provision”. To look at and address the problems facing people with interrupted paid work records and caring responsibilities, especially women.

SO WHAT IS THE SITUATION AT AT APRIL 2006 Current single person’s Basic State Pension is £84-25 Couple’s BSP based on Husbands contributions £ Wife own pension based on Husbands contributions £50-50 Category “D” Pension over 80 £50-50 If all income is below thresholds stated below income topped up by Pension Credit to £ single person and £ Couple.

AS AT APRIL 2006 Yet quoted Poverty level for a Single person is £ a week ?? Life Expectancy is 81 Women & 77 Men So lets look at Turners proposals in more depth:- Understanding that his brief is also to take into account longevity and the fact that the birth rate is falling. This leading to a decline in National Insurance Contributions in the longer term but with a greater cost in supporting pensions.

TURNER’s MAIN PROPOSALS’s They do nothing immediately for today’s Pensioner’s Proposes the creation of a National Pension Saving Scheme. Basically a Wage earner paying in 5% of Salary with Employer paying in 3% Minimum – coupled with Government tax relief to wage Earner reducing amount to 4%. Contributors need to opt out rather than in. Age being considered for joining NPSS is 25 No need to join NPSS if in Occupational Pension Scheme – But may wish to consider options.

TURNERS PROPOSALS In 2010 Proposed Pension Increases related to Average Earnings growth – Rather than price rises or 2.5% Max as is current since Mrs Thatcher broke the link in NPC calculate that on top of a usual 2.5% rise it would mean a £1-36 a week more for that year.

TURNERS PROPOSALS Proposed rises in Pension Age 66 in in /69 in 2050 Remembering Womens Pension Age Rises to 65 by 2020.

TURNERS PROPOSALS Provides Full Basic State Pension to Pensioners at 75 onwards. SUBJECT TO A DATE BEING SET. This would end the unequal payment of pensions top Pensioners of that Age Group. Proposal to provide equality of Pensions for Women, Carer’s& Interrupted paid work records of pension age by State pension being based on the Universal principle rather than the amount of NI contributions made.

AN EXAMPLE OF HOW NPSS WILL WORK You would pay 5% of your Salary between £5,000 & £33,000 The Employer a Minimum of 3% Government will give Basic Rate Tax relief at 22%. This in effect reduces amount you pay out to 4% Assume you are paid National Average wage considered £23,000 a year. You would pay £730 a year – your employer£550 and tax relief £180 in all that is £1,460 a year.

Example of How NPSS Works Turner estimates that if someone on this wage started saving into NPSS at 35, the estimated fund at retirement would be about £55,000. This would give an Annual Pension of around £3,000 today. If the person started saving into the scheme at age 25 it is estimated his/her pension would be around £4,400 or £84-60 weekly

What it means to a person aged 23 Retirement Age – Anybody now under 30 would be hit by the rise in retirement age from 65 to 67 under Turners proposals. If they are under 20 – Turner expects them to work until they are 68 State Pension currently £84-25 for a single person would rise to about 20/25% of median earnings by 2045 or more like today’s £ Additional Pension – Current second pension would continue but play a less important role, and be worth 10% of Median earnings on retirement.

Person Aged 23 Continued Young Adults would be encouraged to join NPSS if not in a company scheme. If they earn’t £23,000 a year and started saving at 25 this would give them a pension of £4,400 a year - £84-60 weekly So with the basic State Pension, State Second Pension & NPSS together it should be worth 45% of their final salary. State Basic Pension (assume) £ Current Second Pension NPSS Total Assumed Pension £ NOT A LOT WHEN YOU CONSIDER IT’S A PENSION FOR 42 YEARS TIME !!!

WHAT IS THE CWU POLICY Full support of the National Pensioners Manifesto which was ratified at the 2004 Pensioners Conference. Parts of which are being implemented by the present government. This support is being backed by provision of information to members, by affiliation to the NPC and by actively campaigning through rallies and lobbying The CWU are showing the same committed support for the Pensioners Charter.