Public Sector Pensions: Latest position
CIRCULAR: 2011HOC0069MW
2 February 2011
TO: ALL MEMBERS
Dear Brother/Sister
PUBLIC SECTOR PENSIONS: LATEST POSITION
As you will be aware, there are various proposals from the coalition government at Westminster which threaten the future of our pensions. The government is seeking to make cuts of £2.8 billion through changes to public sector pensions. The changes being discussed include proposals to:
- Increase contributions by at least 3%;
- Introduce tiered contributions – i.e. additional increases for higher earners;
- Increase retirement age;
- Introduce career average schemes to replace final salary arrangements.
In addition the Hutton review of public sector pensions is likely to make further proposals regarding the pension benefits and entitlements of public sector scheme members. Hutton produced an interim report in October last year and we now await the final report. The details of these attacks, was outlined in a bulletin sent to all members at home. That bulletin – and the FBU submission to the Hutton Review - can be found on the FBU website.
The Union has already outlined to Ministers and to senior civil servants our concerns about the impact of these changes on FBU members and on the future of the Fire Service schemes. We have outlined our desire for detailed discussion on the proposals and on our objections to them.
We have also been involved in wider discussions on pensions through the TUC. Following a meeting, between the TUC and the Chancellor the government has now confirmed some amendments to the timetable for the proposed changes. It has been agreed that there will be a series of central discussions with Unions to address the broad issues. The Chancellor has now agreed that details of how proposed saving should be made should await these discussions and will now be delayed until June, after the budget. We shall also utilise this delay to follow up detailed discussion regarding the Fire Service schemes.
While this delay may be welcome, it is important to note that the government has not altered its position on the need for savings of £2.8 billion, merely on the timing and mechanism for discussion. Next week the Executive Council will discuss how we respond to these developments. In the meantime I urge all FBU members to continue to build the campaign to defend our Service and our pensions – including by attending the national demonstration called by the TUC on March 26th.
Best wishes.
Yours fraternally
MATT WRACK
GENERAL SECRETARY
MW/sll
