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Public Sector pension agreement


CliveH

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This just in

 

(eye watering accrual rate for the civil servants!! - 1/44th!! - i.e work for 40 years and get a pension of 91% of your career average earnings.)

 

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"Four major public sector schemes have agreed heads of terms with the government on proposed reforms to pensions.

 

Chief secretary to the Treasury Danny Alexander (pictured) announced that the government had reached agreement with the health, civil service and teachers pensions schemes.

 

The schemes and the unions representing their members have all agreed to a set of reforms, with the exception of the PCS union, which represents civil service workers, which walked away from talks.

 

In a statement to the Commons Alexander outlined key changes to the schemes:

 

•Health: Career average scheme, retirement linked to state pension age, accrual rate of 1/54th of earnings, pre-retirement benefits valued according to CPI plus 1.5% for active members and CPI for deferred members

•Civil service: Career average, linked to state pension age (SPA), an accrual rate of 1/44th of earnings, pre-retirement benefits re-valued by CPI for active and deferred members

•Local government: Career average, linked to SPA

•Teachers: Career average scheme, linked to SPA, accrual rate of 1/57th of earnings, pre-retirement benefits re-valued by CPI+ 1.6% for active members and CPI for deferred members

Alexander said all four schemes had agreed to the main points in the government’s offer made in November. Those are: a rise in contributions by 3.5%, to move schemes to a career average basis, that no one with less than 10 years to retirement would see any change to their pension and that no further reforms will be brought in for 25 years.

 

However, the schemes have agreed to cost ceilings, ranging from 20.4% to 22.9% of the current employee and taxpayer contribution level. If the ceilings are breached the government will be able to enact changes to bring costs down."

 

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CliveH - 2011-12-20 2:01 PM

 

This just in

 

(eye watering accrual rate for the civil servants!! - 1/44th!! - i.e work for 40 years and get a pension of 91% of your career average earnings.)

 

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Don't they also get an automatic knighthood for 40 years ?

 

 

;-)

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Syd - 2011-12-20 3:15 PM

 

 

Just heard on Radio 4 that ginger top has announced that a letter sent to the unions recently has been withdrawn.

 

Does that mean that the offer that the unions thought they had secured has been withdrawn ??

 

 

That depends what the letter said.

 

;-)

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