UNISON Pension 1

strategy factsheet

Background

UNISON members who are affected by the

government’s pension proposals are in a number

of public sector pension schemes. There are very

small numbers of members in the Teachers Pension

Scheme and the Civil Service Pension Scheme.

Primarily UNISON members are in:

——The Local Government Pension Scheme

——The National Health Service Pension Scheme.

Government proposals

UNISON members in these pension

schemes face a number of threats from the

government including:

Reductions in pension benefit increases

Benefit increases were changed by the government

this April linking them for retired and deferred

scheme members to the Consumer Price Index.

This will cut pension benefit payments for public

sector workers by £84bn over the next 15 years.

Contribution Increases

Which have been proposed by government as part

of their cuts and austerity programme. This could

see member contributions rising by 50% or more.

Scheme overhaul and new benefit systems

These changes have been proposed by the

Independent Public Sector Pensions Commission

(also called the Hutton Report).

Fair Deal for Pensions

This is a separate consultation established by

the Tory-led government, which seeks to end the

requirement to have a broadly equivalent pension

provision if members are TUPE transferred out of

the public sector.

Change to State Pension

This is a separate consultation that proposes

just one flat rate State Pension incorporating

the Basic State Pension and the Second State

Pension and the phasing out of the Pension

Credit. If it goes ahead it would mean increased

national contributions and could result in lower

levels of benefits being provided in pension

schemes in the future. UNISON will respond in

mid-June and talks with government, including

ones through the TUC are likely to take place

throughout the rest of the year.

This factsheet informs the union of the agreed industrial strategy

in respect of the threats to UNISON members’ pension schemes.

It includes a question and answer section and a timeline.

UNISON Pension strategy factsheet

UNISON Pension 2 strategy factsheet

Negotiations with government

Contributions increases, scheme overhaul and Fair

Deal for Pensions are subject to a set of discussions

with the government cabinet and treasury ministers

Francis Maude and Danny Alexander. UNISON is

working with the TUC and UNISON general secretary

Dave Prentis chairs these negotiations. The deadline

for these to finish is the end of June 2011.

The content and objective for these negotiations is

to establish a set of key principles that will form the

basis for separate sector discussions in the NHS

and local government.

UNISON’s current position

UNISON will need to see the full details of the

proposals before we can establish who we have a

trade dispute with and the nature of it.

Pension schemes across the public sector are

very different and the nature of how the pension

contribution increases will be calculated and

determined will vary across each scheme.

It would only be at this stage, if discussions break

down, that UNISON will consider taking steps

towards lawful industrial action to protect our

members’ pensions.

To comply with legislation we have to demonstrate

an accurate database and full ballot of members

affected. This process takes some 17 weeks to

complete and we must make sure that there is little

room for the employers to challenge the ballot if we

need one.

It is therefore highly unlikely that any attempt at

industrial action will take place before autumn 2011.

We know that teacher and some civil service

trade unions are aiming to take ballot for industrial

action in June. It is likely that there will be a rolling

programme of different trade unions taking action at

different times as the issues become clearer.

There may be co-ordinated action through the TUC

public services committee or through trade union

staff sides in the LGPS or NHS but we will have

to wait and see how all of these issues develop.

UNISON will be supporting any lawful action taken

by other public sector trade unions in defence of

their pension schemes.

What is paramount is for the union to prepare for

industrial action and part of that programme of

work has already begun.

We have recruited over a 1,000 pension champions

and contacts in the last six weeks.

We must ensure that members are involved and

understand what is at stake. We must deliver a high

turnout in any ballot and deliver a resounding “yes”

vote for industrial action.

We must make every effort to recruit and organise

non-members so that we make sure we have a solid

dispute with little room for employers to break it.

We must push hard to make sure every affected

UNISON branch has the necessary resources and

training to build a network of pensions activists to

help deliver a successful dispute. This is the key to

making sure we repel the government’s attacks.

UNISON Pension 3 strategy factsheet

Question and answer guide

Question Answer

Is the union

challenging the

government over

the change from RPI

(Retail Price Index) to

Consumer Price Index

for pension benefit

increases?

Yes! UNISON has joined a judicial review application (legal

challenge of a government decision) to have this change to the

pension schemes reversed. The union has signed up with other

unions through Thompsons Solicitors

Why don’t we just

go on strike now?

UNISON members need to know what they are going on strike

against in order to make sure there is a high turnout in a ballot

and a resounding “yes” vote – at the moment we do not know

enough about the details to give them the answers. Strikes are

not built in a few weeks and it takes 17 weeks to prepare for

a ballot – it is possible that we will be balloting over a million

members, so we need to get it right.

What is the point of

negotiating with the

government – they

want to attack our

pensions?

It is our obligation to inform the government of where they are

going wrong and to consider all of their proposals in depth. Like

many issues this government has not thought through the full

implications of their ideas. We need to make sure that there is a

good quality pension system for all public sector workers and that

means we have to talk to government

What is the

government’s

timetable for

pension contribution

increases?

First they want to increase scheme member contributions in April

2012; this means they need to lay the legislation to do so no later

than January 2012. We expect the legislation to be laid in 2011.

There has to be a 12-week consultation period before they can

do that. So that is why the campaign and any plans for industrial

action must be considered against this timeline.

How will the

pension increases

be negotiated?

We are not negotiating the increases as a point of principle.

No TUC affiliated union is. Once the negotiations with the

government end in June each government department will

come forward with its proposals.

How will the changes

to my pension scheme

and benefits be

negotiated?

These discussions will take place in the government

departments after June. The timetable is very tough to deliver

brand new schemes and implement the 27 recommendations

of the Hutton Commission.

So could there be

industrial action

over the pension

contribution increases

and the new pension

scheme proposals?

It is possible that the pension contribution increases and the new

pension scheme proposals will be the cause of industrial action.

What is UNISON policy

on these issues?

The national policy of the union is to negotiate, but to oppose

detrimental changes to our members’ pension schemes and

organise a ballot for industrial action if necessary to defend the

current pension system.

UNISON Pension 4 strategy factsheet

Negotiations and campaign timetable

Below is the predicted government timetable for

negotiations, consultation and implementation. The

critical period will be between June and October.

Began April 2011

Negotiations with government on public sector

pensions

April/May 2011

UNISON regional briefings/branch meetings

May/June onwards 2011

UNISON training for pension champions and

contacts

June 2011

Negotiations with government due to end

July 2011

Government departments consult on legislation

thatwill increase contributions

July 2011 – September 2011

UNISON consults with members on action they

wish to take

October 2011

Government issues statement on the 27 Hutton

recommendations

October 2011

Negotiations with government departments

Hutton recommendations

April 2012

Scheme member contributions start going up

January 2012

Negotiations on new pension schemes continue

2012/2013

UNISON members consulted on new scheme

proposals

2014/2015

New schemes implemented

Published by UNISON, UNISON Centre, 130 Euston Road London NW1 2AY