COUNCIL EMPLOYERS ARGUE FOR PENSIONS ALTERNATIVE
28 September 2011 A leading body representing council employers has written to the government suggesting alternative pension reforms for the sector, which it says would save money without the need for immediate contribution rises. Local Government Employers has proposed that employees could be given the choice of paying higher contribution rates or accepting a cut in their eventual pension benefits, with their choice being implemented in two years’ time. The normal retirement age would also go up from 65 to 66 in April 2014. No employee would face contribution rises for the next two years. The plans would save £900 million over the next three years but would be more acceptable for the low paid than a solution based solely on raising contributions, the group argued in a letter to Communities secretary Eric Pickles, and reported by the BBC. Read more from People Management . 2 November 2011 The Department for Education have written a comprehensive article outlining the changes that the government are proposing for the Teachers’ Pension Scheme. What changes is the Government proposing for the Teachers’ Pension Scheme? The Government wants the Teachers’ Pension Scheme to be one of the best pensions available. The proposed scheme keeps high quality benefits that teachers deserve whilst balancing the need for a more sustainable scheme that is fairer to taxpayers. What will stay the same: · You will continue to receive a guaranteed income in your retirement, unlike the majority of people with private sector pensions. · You will keep the pension and lump sum you have already earned and this will remain linked to your final salary on retirement. · You will retain options to retire at any age between 55 and 75. What is proposed to change: · Moving from a final salary pension to a career average pension scheme. · A phased increase to teachers’ Normal Pension Age in line with changes to the State Pension Age. · A rebalancing of employee and employer contributions to provide a fairer distribution between members and other taxpayers. Visit the Department for Education’s website to read the full article. REFORM OF THE TEACHERS’ PENSION SCHEME
GOVERNMENT SETS OUT ITS OFFER ON PUBLIC SECTOR PENSIONS 4 November 2011
CIPP Policy News Journal
09/10/2012, Page 183 of 234
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