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Public sector pensions: 'Deal' on health scheme Public sector pensions: 'Deal' on health scheme
(40 minutes later)
An initial agreement on health workers' pensions has emerged during a day of key negotiations for public sector staff.An initial agreement on health workers' pensions has emerged during a day of key negotiations for public sector staff.
Unison is poised to put the government's "final offer" to members of its executive in the new year.Unison is poised to put the government's "final offer" to members of its executive in the new year.
There is also thought to be some agreement on the scheme affecting local government employees.There is also thought to be some agreement on the scheme affecting local government employees.
But the PCS union has rejected the latest offer from the government for civil service pensions.But the PCS union has rejected the latest offer from the government for civil service pensions.
ImpactImpact
Monday was earmarked as a key day for union responses to the government's pensions offer with strikes threatened. Monday was earmarked as a key day for union responses to the government's pensions offer.
The latest announcement is a broad outline of a deal with Unison, but is only the first stage of a process that would have to go to the union's executive and possibly to members. The latest announcement is a broad outline of a deal with Unison, but it is only the first stage of a process that will have to go to the union's executive and possibly to members.
A new offer on NHS pensions was put to the unions earlier this month.A new offer on NHS pensions was put to the unions earlier this month.
Under the proposals, 530,000 staff earning between £15,000 and £26,557 would be spared any rise in pension contributions next year, as would those less than 10 years away from retirement, but higher-earning employees would be expected to pay more. Under the proposals:
Additionally, the government has now pledged to consult on the impact of changes on staff in the emergency services.
  • 530,000 staff earning between £15,000 and £26,557 would be spared any rise in pension contributions next year
    •
  • So would those less than 10 years away from retirement
    •
  • Higher-earning employees would be expected to pay more
    •
  • Staff in areas transferred out of the public sector will retain their right to stay in the pension scheme
    •
  • There would also be an improved accrual rate - the rate at which the value of a pension builds up, within a career average pension scheme
    •
Additionally, the government has pledged to consult on the impact of changes on staff in the emergency services.
"This is the government's final offer. On some issues, such as contribution rates for the low-paid next year, and for people close to retirement, we have made progress," said Christina McAnea, Unison's head of health."This is the government's final offer. On some issues, such as contribution rates for the low-paid next year, and for people close to retirement, we have made progress," said Christina McAnea, Unison's head of health.
"On others, we always knew this would be a damage-limitation exercise aimed at reducing the worst impacts of the government's pension changes.""On others, we always knew this would be a damage-limitation exercise aimed at reducing the worst impacts of the government's pension changes."
Staff in areas transferred out of the public sector will retain their right to stay in the pension scheme, under the offer. There would also be an improved accrual rate - the rate at which the value of a pension builds up, within a career average pension scheme.
Rehana Azam, national officer of the GMB which was also involved in NHS pensions negotiations, said: "The sector specific discussions have been extremely difficult and there is still much detail to work through."Rehana Azam, national officer of the GMB which was also involved in NHS pensions negotiations, said: "The sector specific discussions have been extremely difficult and there is still much detail to work through."
Key meetingKey meeting
Unions representing public service workers are meeting at the TUC, at the end of a day in which separate negotiations have moved at a varying pace.Unions representing public service workers are meeting at the TUC, at the end of a day in which separate negotiations have moved at a varying pace.
The Prime Minister's official spokesman said the government remained hopeful of a deal on public sector pensions before the end of the year.The Prime Minister's official spokesman said the government remained hopeful of a deal on public sector pensions before the end of the year.
"It is possible there may be more progress in some sectors than in others. These talks are talking place at scheme level rather than the big picture level and different schemes have different characteristics," he said, denying that there was a policy of divide and rule. "It is possible there may be more progress in some sectors than in others. These talks are taking place at scheme level rather than the big picture level and different schemes have different characteristics," he said, denying that there was a policy of divide and rule.
A statement on the pensions negotiations will be made to Parliament on Tuesday by the Chief Secretary to the Treasury, Danny Alexander.A statement on the pensions negotiations will be made to Parliament on Tuesday by the Chief Secretary to the Treasury, Danny Alexander.
Last week, the government confirmed it was pressing ahead with raising pension contributions next year for teachers and civil servants, even though there was no agreement with unions at that time.Last week, the government confirmed it was pressing ahead with raising pension contributions next year for teachers and civil servants, even though there was no agreement with unions at that time.
The Department for Education and the Cabinet Office said the changes from next year would go ahead, although further talks would be held about future arrangements.The Department for Education and the Cabinet Office said the changes from next year would go ahead, although further talks would be held about future arrangements.
Christine Blower, of the National Union of Teachers, earlier said she was entering negotiations with the officials at the Department for Education hoping for a breakthrough.
"I always go in in an optimistic frame of mind and hope that the department will come through and make sure that teachers actually do have a merry Christmas and a very happy new year. And that will mean keeping our pensions as good as they have been," she said.
Earlier she was reported to have said that a deal was close, but the NUT has denied such a comment was made. The talks, which started at 10:30 GMT are ongoing.
The most complex situation appears to be among negotiations between the government and civil service unions.The most complex situation appears to be among negotiations between the government and civil service unions.
The Public and Commercial Services (PCS) union, the largest of the civil service unions, has rejected the government's latest offer, saying "nothing has changed" since the strike on 30 November.The Public and Commercial Services (PCS) union, the largest of the civil service unions, has rejected the government's latest offer, saying "nothing has changed" since the strike on 30 November.
"We continue to oppose the government's attempt to force public servants to pay more and work longer for less," said PCS general secretary Mark Serwotka."We continue to oppose the government's attempt to force public servants to pay more and work longer for less," said PCS general secretary Mark Serwotka.
The second biggest civil service union, Prospect, has authorised its negotiators to continue talking to the government about changes to the civil service pension scheme.The second biggest civil service union, Prospect, has authorised its negotiators to continue talking to the government about changes to the civil service pension scheme.
Prospect also said it would not call for further industrial action while the negotiations on a new scheme were under way.Prospect also said it would not call for further industrial action while the negotiations on a new scheme were under way.
"This is the first time we have been able to put the detail of the government's proposals to members for them to consider, together with a clearer focus on the design of the new scheme," said Dai Hudd, deputy general secretary. Dai Hudd, deputy general secretary, said the strike on 30 November clearly persuaded ministers to improve their offer but added the union remained concerned at the impact of the proposals on its members.
"The 30 November action clearly persuaded ministers that they had to come up with concrete improvements to their earlier proposals.
"This they have now done, though we remain deeply concerned at the impact of their proposals on our members at a time of pay freeze."
Local governmentLocal government
Meanwhile, the BBC understands that agreement has been reached between councils and unions on the principles of a deal on the pension scheme for local government employees.Meanwhile, the BBC understands that agreement has been reached between councils and unions on the principles of a deal on the pension scheme for local government employees.
However, there would still be work to be done on the detail in the new year.
Under the deal, the new Local Government Pension Scheme would be introduced in 2014, a year earlier than originally planned.Under the deal, the new Local Government Pension Scheme would be introduced in 2014, a year earlier than originally planned.
This will be a career average scheme, with a pension age linked to the state pension age. There will be no contribution increases for employees before 2014, it is understood.This will be a career average scheme, with a pension age linked to the state pension age. There will be no contribution increases for employees before 2014, it is understood.
Negotiations on the Local Government Pension Scheme have been separate to the talks on other public sector pensions.
The scheme is funded, which means that pensions are paid for by underlying investment funds, not out of general taxation.
Are you an NHS worker? Are you affected by the issues raised in this story? Send us your comments using the form below:Are you an NHS worker? Are you affected by the issues raised in this story? Send us your comments using the form below: