Yougov Survey on Fire Service Pensions : Government Savings Claim Exposed

June 27, 2011 by webmaster  
Filed under Circulars, Pensions

CIRCULAR 2011HOCO281MW
27 June 2011
TO:  ALL MEMBERS

Dear Brother / Sister

You will be aware that the union commissioned a survey of members by the polling organisation YouGov. The aim was to identify and quantify the views of members on the various changes proposed in relation to pensions. The purpose is to assist us in presenting evidence to government during the discussions on pensions. It was therefore important that an external organisation conducted the survey, and that it was conducted according to their advice and recommendations.

The survey response rate was 18% and I wish to thank all members who participated. This is the most thorough survey of union members so far conducted in relation to the current debates on public sector pension schemes. It will therefore provide us with much useful information to present to government pension officials, Ministers and other politicians. It will not replace other elements of campaigning, but is an essential aspect of building a solid (and evidence based) case against the proposed attacks.

The most significant finding of the survey relates to the possibility that members may choose to opt out of fire service pension schemes if contribution rates increase. The importance of this is that it undermines government claims that the contribution increases will be a significant source of revenue for the government. It is important to remember that the contribution rate increases proposed from next year are simply a mechanism for government deficit reduction; they are nothing to do with the viability or otherwise of our pension schemes. The government seeks to raise at least £33 million from members of the fire service schemes over three years – effectively an additional tax on public sector workers.

The survey identifies that the estimated income is unlikely to be achieved as a result of members opting out of the schemes. Indeed, far from increasing income, the changes could result in a loss of revenue to the schemes of between £126 million and £283 million over three years (2012, 2013, 2014). For details of this and for further information, I attach a note sent to CLG pension officials last week.

Best wishes.

Yours fraternally

MATT WRACK
GENERAL SECRETARY
MW/jh

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