the city's most effective trade union

“Pay more, work longer and get less”

On top of a pay freeze, rising inflation and the threat of redundancy, public sector workers now face a pensions raid.  The Hutton Report is a Trojan horse to attack public sector pensions and make public sector workers pay the price for the excesses of the bankers.
The report recommends that:

  • Staff contributions to increase by up to 50% – This was announced by the ConDem
    government last year before the report was released. Increased contributions will not go into your pension schemes, they will go to plug a funding gap caused by cuts. This is a direct tax on public sector workers to bail out the banks!
  • The retirement age to be increased – for some people this could increase to 68!
  • Pensions to be calculated on your career average salary rather than your final salary.
  • There should be a cap on employer contributions – this means that any increase in
    pension costs will be put directly on staff in the scheme.
  • Workers who are outsourced should not be allowed to be members of the scheme.
  • Increases in pensions should be linked to the lower CPI measure of inflation
    rather than the RPI measure of inflation.
  • The report also makes some recommendations which UNISON would welcome such as greater transparency and access to information relating to the pension schemes.

There is a lot of mis-information surrounding public sector pensions. Public sector
pensions are not gold plated, with the average in local government being £4,000 a year
and this falls to £2,800 for women.

Public sector pension schemes make more money than they pay out and they are entirely sustainable, having only been renegotiated in 2006. If we didn’t save for a decent pension we would have to rely on benefits in retirement which would cost the taxpayer more in the long term. It’s worth noting that over £100billion is invested by public sector pensions in the UK which supports the economy.

UNISON is committed to defending good public services and decent pensions for all.

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