NASUWT: Private schemes should also be scrutinised

Thursday, 7 October 2010 12:00 AM

Chris Keates, general secretary of the NASUWT teachers' union, comments on John Hutton's report on public sector pension provision:

"Nothing in the Report comes as any great surprise.

"John Hutton was on record as saying no change is not an option, 'deals' done in previous reviews are not acceptable and final salary schemes are not viable, even before the collection of evidence was completed. All of this appears to be reflected in the report.

"I do welcome the fact that the report rejects the notion that public sector pensions are 'gold-plated' and points out that they are 'fairly modest by any standard.' This should put an end to the hysterical debate deliberately created by the coalition government to soften up the public for an attack on public sector pensions.

"I also welcome the fact that he does not advocate comparisons with the poor practice in the private sector.

"If there is any drain on the taxpayer it is not public sector pensions but the large number of private sector employers who fail to provide occupational pensions for their employees. That is the area that should be put under the microscope of reform, as all workers are entitled to a decent pension.

"It is these private sector employers, supported by the obsessive opponents of public services, who try to mask their own dereliction of duty by seeking to create pension envy and promoting equity of misery.

"The teachers', NHS and civil service pension schemes recently were reviewed. Contributions have gone up, the retirement age has increased and arrangements have been made for employers and employees to share the costs of any future increases, with a cap placed on the employers' contributions.

"These changes were deemed by the Treasury to have secured the long term sustainability, affordability and viability of the schemes.

"Hutton's own figures show these changes, will in the long term, contribute significantly to reducing the cost to the public purse.

"In the light of this, if the coalition government does proceed to seek to make further changes it will only be because the public sector is once again being made to pay for the financial recklessness and greed of others."

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