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Friday 17 December 2010

Defend Our Pensions! The Hutton Review Closes‏

Friday December 17th marks the closure of evidence for John Hutton's review of public service pension schemes. It should mark for us the day we began to prepare all sections of the union for the fight that should unify all public sector workers in struggle against the ConDem government.

For what is at stake? Our living standards now and in retirement - we fight today for us and for those that have yet to come into the workforce.

So far the measures imposed by the ConDem government equate to working longer, paying more and ultimately they want us to get less.

To remind all of what has been imposed so far.

A 3% increase in our contributions - for whatever scheme you are in to be implemented in 2012.

A cut in the value of the annual pension increase by moving theinflation rate from the Retail Price Index to the Consumer Price Index.

These two measures alone now mean that in practice the schemes are economically sound and there is no reason, except political spite, to change the current benefits.

What is to come next?

Hutton has asked a further 25 broad questions, in a complete review of the structures of our schemes, that will shape his final report. We can expect wholesale changes to our current benefits, an increase in retirement age and a landscape quite different from the one we are used to.

We know he favours career average and does not believe the low paid scheme members should subsidise what he calls high flyers - but there are very few of them.

He could consider closing the current schemes to establish a new benefits system for the public sector - certainly merging a lot of the smaller schemes and possibly looking at a smaller number overall.

That he expects government departments to negotiate with the unions and that the new structures should be in place by 2014.

But of course what Hutton proposes the Con Dems can reject. We have already seen the ability of the wolves to appear from under the sheep's clothing. So we should take no comfort in what he eventually recommends until we see the government's response.

All across Europe public sector workers are bearing the brunt of the economic crisis that was created by the banking sector. Governments in response have turned on our jobs, pay and pensions. Pension schemes are one of the greatest achievements ever gained forworking people, to be free from the fear of poverty at the end of our working lives stands as a tribute to those whose struggle came before us.

They must be defended with all of the power our movement can muster.