NUT comment on David Cameron's pension reform speech

Tuesday, 28 June 2011 4:31 PM

Commenting on David Cameron’s speech to the Local Government Association conference, Christine Blower, General Secretary of the National Union of Teachers, the largest teachers’ union, said;

“David Cameron insists on pressing ahead with the baseless argument that public sector pensions must be substantially cut.

“The Teachers’ Pension Scheme has already been reformed in 2007. The National Audit Office recognises that those changes, including increased contributions, a normal pension age of 65 and a cap on employer contributions, mean that costs are falling. The NUT believes that our scheme is viable and sustainable. However, our 2007 agreement also provided for regular re-valuations of the scheme and for teachers to pay more if costs are shown to have risen.

“This Government has refused to undertake this re-valuation and wants to impose further changes without any evidence they are needed. Furthermore, David Cameron said today ‘what you have already earned you will keep’. However, the RPI to CPI switch already imposed is an attack on accrued rights that will cost existing and future retirees thousands of pounds. It breaks coalition manifesto promises.

“Teachers are not burying their heads in the sand. We have already agreed to possible further changes, at a cost to ourselves, but we cannot negotiate an agreement when the Government is failing to bring forward any evidence to support its case.

“David Cameron is absolutely right to point out the gap between public and private sector pensions. The NUT also agrees that there is a problem. Two thirds of private sector workers don’t have access to any employer-sponsored pension scheme and face poverty in retirement. The NUT wants to see fair pensions for all workers. We want the Government to improve the basic pension and require all employers to contribute to decent occupational schemes.

“The Prime Minister seems to think equality means the whole country being reduced to poverty in old age. This is a betrayal of those public sector workers who are saving for their retirement and those private sector workers who are denied the chance to do so.

“The Government needs to be aware that more and more people are becoming extremely angry about this attack on pensions and will take action to defend them. The ‘we are all in this together’ rhetoric is sounding increasingly hollow with each passing day”.

END

For further details contact Caroline Cowie on 0207 380 4706 or 07879480061.  

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