Today has seen one of the biggest industrial actions in living memory. Members of 29 trade unions (all of whom are public sector workers) voted to strike today, in opposition to proposed government reforms to public sector pensions. The government is still in talks with the unions over the reform plans.
The government are proposing a £2.8bn increase in contribution payments by 2014/2015, pegging the retirement age to the state pension age and switching the way pension contributions are increased every year from the higher RPI rate of inflation to the lower CPI rate.
The government also plan to move staff from final salary schemes to career average schemes. Approximately 2.6 million people from across the range of public sector posts from teachers to immigration officers and care workers were ballotted – with an estimated 750,000 voting yes. The government say that the reforms are part of the plan to cut public spending, cut the deficit and improve the economy; however the plan faces large opposition as it will cut the amount the size of many people’s pensions. CLICK HERE TO KEEP READING