Pensions campaign: negotiations update

Following the day of action on 30 November ATL has been in talks with the government over new arrangements for the Teachers Pension Scheme. This culminated in a final offer being made on 19 December 2011.

It is a significant improvement on the widely publicised offer made on 2 November. Full details of the proposals will be finalised in the new year but in summary:

• Teachers would remain able to choose a retirement date at any age from 55 onwards, subject to actuarial reduction as they can under the current TPS. However, under the latest proposal, although teachers' pension age will be linked to state retirement age, the government has conceded that retirement at 65 will be financially viable for teachers.

• Although there's a move from final salary to career averaging, teachers' pensions would grow at a faster rate than in the current TPS (a new accrual rate of 1/57ths rather than 1/80ths).Therefore many teachers would receive similar benefits in retirement as they do now.

• Independent school teachers will remain in the TPS, which is a commitment the government had not made on 2 November.

• As per the proposal from 2 November, teachers who are 10 years from retirement will be fully protected under their current arrangements and, under the revised plans, teachers who miss the 10-years cut off by three years will also receive some protection.

More information about this offer is available on the ATL website.

 

Local Government Pension Scheme

A set of principles providing "a positive framework" for negotiations on the future of the local government pension scheme (LGPS) in England and Wales have now been given the green light by government.

The principles and timetable for detailed negotiations were jointly agreed between unions and the Local Government Association after lengthy talks and submitted to the government.

A letter issued by the Secretary of State, Eric Pickles,on 20 December  contained an unexpected reference to a cap on employers' funding of the scheme, which had not been discussed with unions and has not formed part of the negotiations. This has now been withdrawn and a new letter issued without this reference. Unison, the largest local government union highlights the following aspects of the principles that have been agreed:

• Zero contribution increases for most members and no change in contributions, if required, until 2014
• Maintain the inherent and relative value of the pension to other public sector schemes
• Prevent opt-out from the scheme and encouraging new members
• Keep Admitted Body Status
• Ensure employers maintain the required contribution levels
• Establish new governance mechanisms at scheme and individual fund levels to ensure good governance and reduce central government intervention
• Negotiation - rather than imposition - of future changes post 2014 - if any are necessary
• Improve efficiency through a review of procurement, fund management and administration

(Source: Unison )