TUC 'line in the sand' on public sector pensions applauded by Unite

30th July 2009

The TUC’s ‘line in the sand’ in exposing the distortions about public sector pensions has been applauded by Unite, the largest union in the country.

The TUC said in a new briefing that the majority of public sector pensioners receive a pension of less than £5,000 a year and that half the women on NHS pensions receive less than £3,500 annually.

Unite assistant general secretary for the public sector, Gail Cartmail, said: "These new TUC findings expose the myth being peddled by the right-wing media and commentators that hard-working public servants are living in the lap of luxury once they have retired.

"This is nonsense and it is right that the TUC has drawn a line in the sand on this issue. If there is a cause for concern, it is the extravagant, bordering on the greedy, pensions that an elite of City and top business people award themselves, regardless of whether their enterprises are successful or not." 

Gail Cartmail said that there were three facts about public sector pensions that needed to be highlighted:

  • that the current level of public sector pension provision is self-funding i.e. the money needed is covered by the contributions made by employers and employees. This scheme is not asking for bail-outs from the government
  • the cost of providing a public sector pension, according to a recent report by the Pension Policy Institute, is the same as the cost of a typical final salary scheme in the private sector. 
  • the government has negotiated with the trade unions and agreement has been reached to raise the retirement age for new entrants for public sector schemes; to increase average member contributions; and to cap the increase in government costs.

ENDS

NOTES TO NEWS EDITORS:

For further information, please ring:

Gail Cartmail 07768 931 305
Shaun Noble, communications officer (health sector) 020 7420 8951 or 07768 693 940


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