NIPSA lambastspension ‘attack’

NORTHERN Ireland’s largest Public Sector Union, NIPSA, slammed the attack on Public Service Pensions following last week’s announcement by Lord Hutton recommending radical changes to Public Service Pensions.

NIPSA General Secretary, Brian Campfield said: “These announcements today along with what Hutton proposed in his first report, including significant increases in employee contributions, seriously devalue the pension rights of public servants.

“The recommendations in this report together with what the Government did in changing indexation from RPI to CPI could cost as much as 25 per cent in pension values.”

Last week’s Hutton Commission report proposed an end to final salary schemes, increasing the age of retirement and further controls on the limit for Employer contributions.

NIPSA Assistant General Secretary, Bumper Graham said: “Public Service Pensions were updated and changed in 2007 following negotiations, as a result total public servants contributions went up by as much as 17.5 per cent.

“The cost to the taxpayer has been reduced by 15 per cent, those changes provided for stability what we now face is that agreement being shredded.

“At a time of pay cuts, increased taxation and rampant inflation public servants cannot afford to be paying more for less in their pensions.”

The Hutton proposals received an angry response from public service unions, Bumper Graham said: “It is clear that the scapegoating of public servants continues and that their pensions are now the next target.

“NIPSA is in discussions with other public service unions and our aim is to stop this assault on pensions, should the Government not listen they face the prospect of industrial action across all of the public services.”

Key recommendations in the report include: linking Normal Pension Age (NPA) in most public service pension schemes to the State Pension Age; introducing a Normal Pension Age of 60 for those members of the uniformed services who currently have a NPA of less than 60; setting a clear cost ceiling for public service pension schemes; honouring, in full, the pension promises that have been earned by scheme members (their “accrued rights”) and maintaining the final salary link for past service for current members; introducing more independent oversight and much stronger governance of all public service pension schemes; encouraging greater member involvement in consultations about the setting up of new schemes, and in the running of schemes; and overhauling the current legal framework for public service pensions to make it simpler.