Branch calls for Yes vote in pensions ballot
Main points
.
Still a final
salary scheme
. Pension accrues
by 1/60th instead of 1/80th
. Transfer part of pension to create lump
sum
. Death in service
benefit increases
. Changes to ill health retirement
. Partner pensions
improvements
. Tiered contribution rates
. Transitional protection
if needed
. Rule of 85 protected til 2020
. Better deal than
England
|
The Branch AGM on 18 Feb called for a Yes
vote in the pensions ballot from 3 March 2008.
"The new pensions deal has been delivered
by the solid support for industrial action UNISON
members showed in 2006 and by the professional
expertise of the union in leading the negotiations
for the new scheme", said Branch President
John Stevenson.
"While each member should look at what
the new scheme delivers for them, overall this
deal meets all of the demands we made when we
went on strike in 2006", said John.
All UNISON members who are conditioned to the
Local Government Pension Scheme (LGPS) are to
be balloted in the next few weeks on the introduction
of a new scheme from April 2009.
And UNISON negotiators are recommending a YES
vote for what is seen as a significantly improved
scheme, negotiated during a period of increasing
pressure on all pension schemes. The new scheme,
which applies to all members of the LGPS, including
members in police, higher and further education,
the careers service, Scottish Water and the
community and voluntary sector, is retained
as a final salary scheme, improves on some benefits
and incorporates protections for existing members
where needed.
There is Rule of 85 protection to 2020 and
a better deal than the England and Wales scheme.
Graduated contributions are particularly welcomed.
UNISON Scottish Convenor Mike Kirby says, "This
is an excellent result for UNISON and its members
and has been delivered by the solid support
for industrial action that UNISON members showed
in the dispute in 2006 and by the professional
expertise of the union in leading the negotiations
for the new scheme."
The new scheme is still a final salary scheme
at a time when similar schemes are being closed
to new entrants or scrapped altogether.
The rate at which people's pension will grow,
however, is significantly improved. Your pension
will now accrue by 1/60th of your final salary
every year instead of the current 1/80th. The
current automatic 3/80ths lump sum is changed
to a more flexible system where you can transfer
as much or as little of your annual pension
to create a lump sum.
Every £1 of pension transferred adds
£12 to your lump sum and you can transfer
up to 25% of your pension. Death in Service
benefit increases from two to three times final
salary.
Partner pensions will now be available to unmarried
partners who co-habit, as well as those who
are married and those in civil partnerships.
And there is increased flexibility allowing
you to draw all or part of your pension benefits
without having to retire completely. Contributions
to the scheme from members are scheduled to
rise slightly on average (from 6% to 6.3%),
but they will now be on a tiered rate so that
pension contributions increase as salary increases.
Lower paid staff - up to 60% of local government
who earn less than £23,600 in fact - will
end up paying less than they do at present.
The tiered contributions work like income tax,
with the lower rates continuing to be taken
from the lower elements of your salary, ie everyone
will pay 5.5% on the first £18K a year
they earn.
Mike Kirby, is clear however, that we haven't
got everything we wanted. "We wanted to
have ill-health retirement provisions that are
more flexible than we were able to," he
said.
"Because of the legal stipulations of
the UK Finance Act, we had to agree limited
improvements here. But we have, we think, negotiated
the best scheme we can with two scheme provisions
for ill-health retirement, and a third discretionary
provision outside the scheme."
There will also be transitional protection
for any current members who would be better
off under the current arrangements.
How will you transfer?
All members will transfer to the new scheme
as at 1 April 2009, and start to accrue pension
benefits at the enhanced rate. Their existing
pensions will be retained, and at retirement,
two pension calculations will be carried out
- one for each scheme.
This is an important new pension scheme for
LGPS members. It protects past benefits, and
builds in new benefits, all for a fairer contribution
related to members' earnings. At a time when
quality pension schemes are under attack from
employers there can be few better examples of
the benefits of UNISON membership.
To maximise this recruitment opportunity the
ballot envelope will include a 'recruit a friend'
leaflet.
For detailed information on the agreement
please check out the UNISONScotland website
at www.unison-scotland.org.uk/pensions
Ballot
The ballot is due to start around 3rd and be
completed by 21 March. If a UNISON member who
works beside you has not received a ballot paper,
or you have lost your paper, please contact
the ballot helpline by 18 March 2008. Phone
0131 226 0096 or email membershipteamscotland@unison.co.uk.
headlines . top
top
|
