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Press Release

NUT responds to Hutton consultation on public sector pensions

30 July 2010

Commenting on the submission of the Union's response to the IPSPC consultation on public sector pensions chaired by Lord Hutton, Christine Blower, general secretary of the National Union of Teachers, the largest teachers' union, said;

"The NUT has presented its views on teachers' pensions to Lord Hutton, who is leading the government's independent review into public sector pensions.

"Teachers are extremely concerned at the uninformed attacks on public sector pensions. The NUT will do all it can to protect teachers' pensions. Opponents of public sector pensions grossly exaggerate their costs, ignoring employees' current and past contributions and pretending that the costs must be met all at once rather than over very many years. In fact, public sector schemes have already been reformed. All teachers are paying higher contributions, the pension age has been raised to 65 for new entrants and a limit placed on employer contributions.

"The government's own figures show that the planned long term reduction in public sector pension costs is on course to be achieved. That has also been confirmed by the National Audit Office.

"The Hutton Commission says in its terms of reference that accrued pension rights will be protected. The government's proposed switch from RPI to CPI indexation shows that this is not so, and is likely to cost a teacher retiring on a £10,000 pension over £30,000 over their retirement. We have asked Hutton to clarify how he interprets this part of his remit, as it is a fiction to say that accrued rights are being protected.

"There should be no need for this inquiry. However, statements by politicians like David Cameron, George Osborne and Nick Clegg suggest the Government has already made up its mind to attack public sector pensions. Lord Hutton needs to dispel the myths and lies in circulation and make it clear to the government that teachers' pensions are affordable.

"The real problem in UK pensions lies in the private sector where employers have used the recession to escape their obligations to their employees. Making public service pensioners poorer will not make private sector pensioners richer. We need to level up to decent pensions for all."

View the submission: http://www.dodsmonitoring.com/downloads/Misc_Files/NUTResponsetoHuttonCommissionJuly2010.doc

Article Comments

The fact that money paid incurrently to the "pensions pot" is less than that which is paid out seems to be an argument that is being pushed to legitamise a cut in public pensions. The fact is that contributions were in surplus over many years has been ignored. Government knew that the day would arive when they would have to pay out, having used the surplus for other things. Their disengenuous approach is typical. I have heard accounts that Hutton does not want to hold with keeping the pension rights for teachers that they have already acrewed. If this is true this amounts to fraud on a massive scale. I wonder if this would be a case to go to the European |Human Rights Commission?

Alan Woodward
23rd Sep 2010 at 10:23 am



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