1. 68 is too late

2. You Didn’t Cause Any Crisis

3. They Did

4. He Did

5. Don’t Let Them Make You Pay

6. 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

7. 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

8. 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

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

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

11. 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

12. 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)

13. 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

14. 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

15. 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?

16. 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

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

18. 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

19. 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

20. 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

21. 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

22. Fighting Back
To Do Now – check latest information and your MP -
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

23. 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