1. Willie Duffy Regional Organiser UNISON PENSION BRIEFING

2. Don’t panic – nothing is going to change immediately  Negotiations with UK government are continuing until October  The Scottish Government issued a consultation paper over proposals to increase employee contributions.  No increases in contributions until April 2012  There is commitment not to reduce benefits earned before the date of any change in the schemes.  Changes to schemes likely to be for benefits earned after 2014/15  Don’t opt out

3. Public Sector Pensions - What Are The Key Issues We Face?  Change to the way pension increases are calculated – RPI/CPI  Scheme contribution increases  Retirement age increases  Benefit changes to career average

4. The Key Issue – Contribution Increases  This is a tax to pay back government debts that were raised to bail out the banks  Not one penny of the money will go into the scheme  It threatens the whole system – if enough members opt- out  It unites all public sector workers in or have access to a scheme  It could allow public sector unions to co-ordinate action  We need to consult members and prepare for a ballot for industrial action

5. Contribution Increases  The Government announced in the CSR a cut in funding to PAYG schemes of £2.8 billion a year by 2014/15  This equates to just over a 3% contribution increase on average for members  Contributions to be phased in “progressively” from 2012, with a 40% saving in 12-13, another 40% in 13- 14 and the remaining 20% in 14-15

6. What are the current NHSPS contributions? If your whole time pay rate is:You pay a contribution rate of: Up to £20,7095% £20,710 to £69,3926.5% £68,393 to £107,8467.5% £107,847 +8.5%

7. Table 1: Proposed increases to contribution rates (before tax relief)

8. Table 2: Contribution rates (after tax relief applied)

9. The Move to CPI  The Government has changed the increase in public service pensions from RPI to CPI from April 2011  The consequences are very significant. CPI is typically, on average, 0.7% per year lower than RPI  The OBR predict that pensions will be 8.5% less by 2017  Lord Hutton says move represents a 15% cut in benefits

10. The Implications of CPI  Pensions are likely to increase from April by 3.1% this year when otherwise would have increased by 4.6%  A woman on the median NHSPS pension of approx £3500pa will be around £53 worse off  A member receiving the overall average public service pension of around £7800pa will be around £117 a year worse off

11. The possible move away from a final salary scheme  Lord Hutton stated in his Interim Report of 7 October that final salary schemes “disproportionately” favour high flyers  He has recommended switching to a career average scheme for public service workers by the end of the next parliament – i.e. 2015  Crucially he has stated that each year’s pension earned should increase in line with increases in average earnings

12. What is a CARE scheme?  This is a scheme that rather than base benefits on final salary bases them on average earnings over a scheme membership  Such a scheme could potentially benefit members whose annual salary increases are generally less than inflation and who are unlikely to benefit from regular promotions  The devil is in the detail however and UNISON is not necessarily against a CARE scheme as long as it’s not a clear cost-cutting exercise  The new scheme for civil servants is a CARE scheme

13. Increasing Retirement Ages?  The Government has already brought forward the State Pension Age (SPA) equalisation date meaning that from April 2018 the SPA will be 65 for both men and women  From April 2020 the SPA will be 66 for both men and women. Under current legislation the SPA is due to rise to 67 between 2034-2036 and 68 between 2044-2046  Lord Hutton has stated that with exception of “uniformed services” NRA’s should increase in line with SPA

14. Campaign Objectives - no one can do everything but everyone one can do something!  Prepare members and staff to resist attacks on public sector pensions and their members  Support negotiators to achieve the best outcome possible and prepare for industrial action  Make sure that UNISON members and staff gain a greater understanding of public sector pension schemes – remove the pension jargon fog

15. Champions and Contacts – training and support will be given Pensions Champions - Will take a greater role by making make sure union briefings and information on changes to public sector pensions are understood by the branch, workplace pension contacts and members. They will take a lead role in Supporting contacts, developing local campaign initiatives making sure that the branch and members are prepared to take action to protect public sector pensions. Pension Contacts - Distribute material, take actions when requested. They will be the workplace feedback link between members and the campaign/negotiators. Talk to and recruit non members.

16. Pensions ballot - timetable 28 September – ballot notices dispatched to all employers being balloted 11 October – ballot for industrial action over pensions opens 17 October – if members have not received ballot paper, they can phone UNISONdirect to request one until noon on 31 October 3 November – ballot closes at 10am 30 November – day of industrial action, plus city centre rallies of support

17. Where can you find everything? Scottish Pension Web Pages http://www.unison-scotland.org.uk/pensions/index.html UK Campaign Web Pages http://www.unison.org.uk/pensions/protectour.asp Advice on Pensions http://www.unison.org.uk/pensions/index.asp