Pensions

Public sector pensions offer to unions to be 'enhanced'

Ministers are set to make an "enhanced offer" to unions in a bid to get public sector pension changes agreed.

(BBC News Wednesday 2nd November 2011)

The BBC has been told the offer will focus on more generous pension accrual rates and higher "cost ceilings" that limit taxpayer liabilities.

Many unions are balloting over planned industrial action on 30 November.

GMB national secretary Brian Strutton said although he did not know what will be offered, any improvement was a move in the right direction.

Chief Secretary to the Treasury Danny Alexander and Cabinet Office Minister Francis Maude are due to set out their plans to trade unions.

They will also update MPs in a Commons statement.

Detailed negotiations

Government sources said the aim was to inform public sector workers about what the changes would mean for their pensions before the results of strike ballots are announced soon.

The offer also reflects the government's desire to reach agreement on the overall framework for reform as soon as possible so they can start negotiating on the details within each pension scheme.

Treasury sources said the changes would mean that most workers would pay in more and work for longer but those on low and middle incomes would get a pension as good as or better than they would get now.

They also insisted that the package would be far more generous than most in the private sector.

But Mr Strutton, one of the chief negotiators for the unions, said the difference between the unions and the government was "quite considerable".

He said workers were being asked to pay 50% more into their pension but they will receive a 25% cut in what they will be paid out.

Mr Strutton also disputed Treasury's claims that public sector workers on low or middle incomes would be better off as the proposals would see them being asked to work eight years longer.

Speaking to BBC Radio 4's Today programme, he said: "I'm hoping that what comes forward today is a sign that government is negotiating genuinely.

"I hope rumours of final positions today aren't true because we will need to examine whatever's said if we are to give it any sort of chance of working."

Ballot results

BBC political correspondent Robin Brant says the key date is 30 November when an array of trade unions are planning a national walkout on a huge scale in protest against coalition government plans to radically change public sector pension provision.

Our correspondent was told by one senior union negotiator that they do not know the significance of the offer but it seems like some kind of progress - but they do not expect in their words that "anyone will be declaring peace in our time".

GMBis opposed to proposed pension changes that will see public sector staff have to contribute more to their pensions and wait longer until they are able to retire.

A number of other public sector unions are also proposing strike action on 30 November, and some of them will continue to ballot until 16 November.

___________________________________________________________________________________________________________________________

GMB is committed to ensuring public sector pensions are a viable, sustainable and secure means for workers to save for retirement.

MYTH: Public Sector Pensions are unaffordable/unsustainable/untenable

REALITY: This is often claimed, but these claims are not supported by evidence. Lord Hutton’s report, the Public Accounts Committee, the National Audit Office and many others have demonstrated that, as a result of reforms agreed a few years ago the cost of public sector pensions will fall.

If escalating taxpayer cost was really an issue, government would not have cancelled the taxpayer cost capping mechanisms in the main Public Sector Pension Schemes.

It is the Government’s unpicking of recent reforms that threatens to lead to escalating taxpayer costs; not the reformed schemes. In the LGPS the cost savings from previous reforms are already feeding through and are reflected in a reduced current service cost.

We are balloting for strike action initially to start on 30 November.

We are also working with other trade unions and community groups to organise local and national protests in support of public sector pensions.

We need a big YES vote and a high turnout to send a clear and united message to ministers that "enough is enough", that will help persuade them to withdraw their current unfair and unjustified attacks on pensions.

You will be receiving your ballot paper from 31 October onwards - be sure to fill it in and return it as soon as you get it.Please spread the word so that your colleagues in GMB vote YES in the ballot. Please vote YES to protect your pension.

Why the decision to Ballot Now?

GMB has been heavily engaged in talks with government for the last six months seeking proper negotiation over reforms to public sector pension schemes. In addition there have been talks at scheme level in the LGPS, NHS and Civil Service. Unfortunately these discussions have revealed only intransigence from government. They have refused to show any flexibility on the vital issue of employee contribution increases and remain determined to impose this pensions tax ahead of any discussion of other planned cuts to pension benefits. The government have refused to hold any meaningful discussions with GMB and therefore it has become necessary to start the ballot process. GMB will continue to seek to negotiate with government but in the absence of progress it is vital that members step up efforts to build for a strong YES vote in the forthcoming ballot.

Latest Briefings

• 4th October