Agreement close in public sector pension row
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The majority of unions representing public sector workers have agreed to consider new pension reform offers from the Government.
Treasury Chief Secretary Danny Alexander has made a statement to the Commons today outlining the heads of agreement that have been reached with health workers, local government workers and some teaching and civil service unions.
The new deals offer more favourable rates for accruing pension benefits, better protection for workers approaching retirement and no watering down of the Government’s “fair deal” policy which protects the pension rights of employees whose roles are transferred to the private sector.
Alexander has told the Commons that as a result of negotiations increased contributions would be phased in over three years starting from 2012, the BBC reports.
Further increases will be reviewed after the first year to assess staff drop-out rates. From 2015 affected public sector pension schemes will be changed to a career average basis with normal pension ages rising in line with the state pension age.
Alexander said this was the Government’s “final position”. Unions that are considering the proposals have agreed not to call any more strikes.
Earlier this month, a new offer was put to health workers. The latest proposals mean the 530,000 staff earning between £15,000 and £26,557 and those 10 years from retirement will be spared any rise in contributions next year, although higher earners would have to pay more. There will also be an improved accrual rate.
The civil service’s largest union, the Public and Commercial Services Union, has rejected the new Government offer although the second biggest civil service union Prospect is continuing with talks.
The two main teaching unions, the National Union of Teachers and NASUWT have yet to sign up to the offer but have yet to reject it.
The University and College Union has also reserved its position and asked for further clarification of the proposals.
Local government employers and unions are working on proposals to delay any contribution increases until 2014. However, Unite has raised some concerns following Alexander’s statement.
Unite national officer for local authorities Peter Allenson says: “Unite is extremely disappointed with the contents of the letter received from Communities Secretary, Eric Pickles, following the statement on public sector pensions by Chief Secretary, Danny Alexander.
“As a result of this letter, Unite is currently reviewing its position on the Principles Document agreed with the local government group representing local government employers yesterday. We await further urgent clarification on the Government’s position.’
TUC general secretary Brendan Barber says: “Since the day of action we have seen a new atmosphere in the negotiations. The state of play varies between sectors.
“Progress has been made in health and local government where key principles for further negotiation in heads of agreement will provide the basis for further talks in the New Year. It is important to stress that no agreements have been reached, but unions now have proposals to put to their executives and members.”
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