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Government outlines pension deal Public sector pension deal outlined by government
(40 minutes later)
  
Outline agreement for big changes to public service pension schemes has been achieved, Treasury Minister Danny Alexander has told Parliament. An outline agreement for big changes to public service pension schemes has been achieved, Treasury Chief Secretary Danny Alexander has told Parliament.
After months of negotiations, and a national strike, he said most trade unions had now agreed in principle to new schemes from 2015.After months of negotiations, and a national strike, he said most trade unions had now agreed in principle to new schemes from 2015.
The deals would change pension schemes for staff in the NHS, local government, civil service and education.The deals would change pension schemes for staff in the NHS, local government, civil service and education.
He said this would eventually save the government tens of billions of pounds.He said this would eventually save the government tens of billions of pounds.
"These heads of agreement deliver the government's key objectives in full and do so with no new money since our November offer," he told MPs."These heads of agreement deliver the government's key objectives in full and do so with no new money since our November offer," he told MPs.
However several trade unions, including the biggest civil service union the CPS, said they had definitely not signed up to the outline agreements. However, several trade unions, including the biggest civil service union - the Public and Commercial Services (PCS) union - said they had definitely not signed up to the outline agreements.
Chris Keates, general secretary of the NASUWT teaching union, said: "The NASUWT has not signed the heads of agreement document and has reserved its position."Chris Keates, general secretary of the NASUWT teaching union, said: "The NASUWT has not signed the heads of agreement document and has reserved its position."
Sally Hunt, general secretary of the University and College Union (UCU), said it had also decided to reserve its position. "We have requested further documentation and clarification on a number of aspects of the proposals," she said.Sally Hunt, general secretary of the University and College Union (UCU), said it had also decided to reserve its position. "We have requested further documentation and clarification on a number of aspects of the proposals," she said.
'Final position'
Mr Alexander told MPs that the progress he had made in negotiations meant that increased contributions would be phased-in over the three years from 2012.
However, further increases would be reviewed in the light of the first year's experience in case there had been high drop out rates from staff who could not afford to pay more.
From 2015 the various pension schemes under consideration will be changed to a career average basis with their normal pension ages rising in line with the state pension age.
He described this as the government's "final position", with the trade unions who now support the outline agreements agreeing not to call any further strikes.
He acknowledged that the draft agreements would now have to be approved by union members and that there would have to be much more detailed negotiations.
'New atmosphere''New atmosphere'
An initial agreement, signed on Monday by all the unions representing local government workers, most health staff and some teaching and civil service unions, still has to be ratified by union executives.An initial agreement, signed on Monday by all the unions representing local government workers, most health staff and some teaching and civil service unions, still has to be ratified by union executives.
The government has made concessions to improve the pension schemes' accrual rates - the speed at which employees build up their pension entitlement.The government has made concessions to improve the pension schemes' accrual rates - the speed at which employees build up their pension entitlement.
But ministers are insisting that the schemes will be more affordable because they have not budged on the big issues.But ministers are insisting that the schemes will be more affordable because they have not budged on the big issues.
Most public servants will have to work longer before they receive their full pensions, and those pensions will be based on their average earnings rather than on their final salaries.Most public servants will have to work longer before they receive their full pensions, and those pensions will be based on their average earnings rather than on their final salaries.
The unions met at the Trades Union Congress (TUC) at the end of a day in which separate negotiations had moved at a varying pace. The unions met at the Trades Union Congress (TUC) at the end of Monday, a day in which separate negotiations had moved at a varying pace.
TUC General Secretary Brendan Barber said there had been a "new atmosphere" in the negotiations since up to two million workers went on strike last month. TUC general secretary Brendan Barber said there had been a "new atmosphere" in the negotiations since up to two million workers went on strike last month.
A Treasury spokesman said: "The government has reached agreement on the main elements of scheme design with some trade union negotiators regarding proposals for public service pension reform.
"We welcome these agreements and the constructive approach taken by many trades unions. The unions concerned will need to make further consultations as appropriate."
Teaching and civil serviceTeaching and civil service
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.
After Monday's talks, the Public and Commercial Services union - the civil service's largest - said "nothing has changed" since the strike on 30 November. After Monday's talks, the PCS union - the civil service's largest - said "nothing has changed" since the strike on 30 November.
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.
It said it would not call for further industrial action while the negotiations on a new scheme were under way.It said it would not call for further industrial action while the negotiations on a new scheme were under way.
Government sources say they have reached an outline agreement - or what is known as "heads of agreement" - over the reform of the teachers' pension scheme.
Two major teaching unions - the National Union of Teachers (NUT) and NASUWT - have yet to sign up but sources say they are not rejecting the government's proposed deal.
NUT General Secretary Christine Blower said there had been insufficient progress in the government's position and the union was unable to sign up to its proposals.
The NUT's national executive will meet in January to take a view on progress in the negotiations and its next steps.
The Association of Teachers and Lecturers (ATL) has signed the deal and said it would seek the views of its members on the government's offer.
NHS pensions offerNHS pensions offer
A new offer on NHS pensions was put to the unions earlier this month. Under the updated proposals:A new offer on NHS pensions was put to the unions earlier this month. Under the updated proposals:
  • 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
  • The government has also 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
  • The government has also pledged to consult on the impact of changes on staff in the emergency services
Unison is poised to put the government's "final offer" to members of its executive and possibly its members in the new year.Unison is poised to put the government's "final offer" to members of its executive and possibly its members in the new year.
The union said it had made progress on issues such as contribution rates for the low-paid and people close to retirement but other areas had been "a damage-limitation exercise".The union said it had made progress on issues such as contribution rates for the low-paid and people close to retirement but other areas had been "a damage-limitation exercise".
Rehana Azam, national officer of the GMB which was also involved in NHS pensions negotiations, said discussions had been "extremely difficult" and a lot of detail still needed to be worked through.Rehana Azam, national officer of the GMB which was also involved in NHS pensions negotiations, said discussions had been "extremely difficult" and a lot of detail still needed to be worked through.
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.
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.