Hutton: The Great Pensions Robbery Continues

CIRCULAR 2011HOCO117MW
10 March 2011
TO:         ALL MEMBERS 

Dear Brother/ Sister 

FBU members will have been following closely the press reports on the release of the final Hutton report into public sector pensions. We can confirm that the report is as bad as expected concluding that public sector employees should work longer, pay more and get less.

The Union will now be working on a detailed assessment of the full Hutton report and further reports will be issued in due course. However it is confirmed that the report recommends the following detrimental changes which include the schemes operating in the Fire and Rescue Service: 

• Shifting from final salary arrangements to career average – for future service.
• Increasing the retirement age to 60 – including in the schemes for uniformed workers (including firefighters).
• Shifting all staff onto the new schemes i.e. from the FPS to the NFPS as soon as possible.
• Introducing tiered contribution – particularly affecting higher earners.

It is important to note that the FBU has always opposed the suggestion that a retirement age of 60 is sensible within the Fire Service. We opposed it in relation to the new scheme introduced in 2006 and continue to do so. There is no evidence to support the claim that firefighters will be able to perform operationally at 60 and beyond.

This report must be considered alongside the separate proposals by the government to change the uprating mechanism for pensions from RPI to CPI and to increase contribution rates by 3.2% – although Hutton recommends that any increase in contribution rates takes account of the potential drop-out rate.

As you will appreciate, the report is complex and will take some time to assess in full in terms of the impact on the schemes operating within the Fire and Rescue Service.

Furthermore, any changes would be subject to further scheme-specific negotiations. We are due to meet the CLG Fire Minister next week where we shall be seeking details of the mechanism proposed for these discussions and will once again outline our opposition to these proposals.

In the meantime, FBU members should be aware that a series of meetings have been arranged in various Brigades and Regions where the issue of pensions (and other challenges facing us) are being addressed. Please ensure that you attend your local meeting.

Yours fraternally

MATT WRACK
GENERAL SECRETARY 
MW/sll