1. Hey You! with the Gold-Plated Pension!

2. Who? …..Me?

3. No! …..You!

4. “ Pensions Apartheid ” “Unfair and Unaffordable” The Blame Game

5. The Real Agenda The Government plans to make the biggest real terms cuts in public spending since the 1920s 80% of the cost or removing the deficit will be public spending cuts with 20% being tax rises Most economists question the wisdom of such large and rapid cuts Most of the savings in education will come from cutting the pay and pensions of teachers and other staff

6. Public Sector Pensions 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 of the highest pensions are in the private sector – that’s where the real “apartheid” is, because most lower paid workers in the private sector have no scheme at all 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. 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

8. 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

9. Current Teachers’ Scheme OTHER BENEFITS:  Survivor benefits are paid to spouses, children, registered civil partners and specific related financial dependants.  Long term pensions are paid to adult survivors at rate of 1/160 of final average salary for each year of reckonable service.  Children at the rate of 1/320 up to a maximum of 1/160 for 2 or more children.  Death in service lump sum payment.  Ill-health retirement pension.

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

12. Highway Robbery Part 1 - Indexation Teachers’ Pensions currently go up each year in line with increases in the Retail Price Index From April the Government wants them to increase 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

13. The Human Shield Present Government established a Public Services Pensions Commission chaired by John Hutton, former Labour minister Remit – “the growing disparity between public service and private sector pension provision” BUT – only looking at public sector Unaffordability of pensions misleadingly talked up Commission will report for Budget 2011 after its interim report Sept 2010

14. Highway Robbery Part 2 Pay More! Work Longer! Get Less!

15. Pay more… “The most effective way to make short-term savings is to increase member contributions and there is also a clear rationale for doing so… The increase in longevity also means that these pensions are now likely to be paid out for longer, increasing the overall costs. These extra costs, despite recent reforms, have not been equally split between employer and employees…” Hutton Interim Report

16. Osborne Can’t Wait Osborne has 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?

17. Work longer… Normal Pension Age of 65 or higher for all teachers strongly hinted at schemes should ensure that ‘normal pension ages are in line with developments in longevity’. pension accrued in future would only be available in full at age 65 Even higher Normal Pension Age in all schemes as State pension age rises to 68? (66 by 2020)

18. Get less……..A Lot Less! Indexation - RPI to CPI breaches “accrued rights” promise reduces the total value of your pension by 13-14% over an average lifetime Raising Normal Pension Age for all to 65 If you are 50 year now on UPS3 and in the scheme before 2007 then retiring at 60 you would lose £1500 per year “Career average” not “final salary”? An easy way of further reducing the value of the pension of any promoted teacher

19. To Be Continued Hutton’s final report will also consider 1. Whether to exclude some groups from public sector schemes, such as teachers in privatised services and private schools 2. Whether to go further in making employees such as teachers pay more so that employers can pay less 3. Whether pay-as-you-go schemes such as ours should be valued differently so that more has to be paid 4. Whether public sector pensions should be worsened so that it is easier for private contractors to bid to run public services

20. Effect of Pay Freeze and Increased Pension Contributions 2.3% Pay rise September 2010 – inflation 4.6% 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: 12.3% fall in real income while at work Pension changes likely to reduce average income by 20% or more in retirement

21. Lifetime Cost – More than £100,000

22. 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 People with the least pension provision will also be affected by welfare benefit cuts

23. Fighting Back To Do Now – email your MP - www.teachers.org.uk/notocuts www.teachers.org.uk/notocuts Get your colleagues to do the same To Follow – petitions, lobbies, school motions In the Spring: a big demonstration – March 26th Joint Industrial Action with other unions In 2005-6 the NUT and other unions saw off Government threats to slash our pensions We succeeded by standing together and being prepared to take action

24. Be Angry You Have A Right To Be Angry This Is A Very Big Injustice That Has To Be Fought Now Or You Will Pay A Heavy Price For The Rest Of Your Life