Socialist Worker

What the pensions proposals mean

Issue No. 1935a

Many public sector workers face:

  • an increase in the age at which they can claim their full pension, from 60 to 65.
  • a 30 percent loss in pension if they retire at 60.

From April 2005 local government workers in England and Wales face a phasing out of the “rule of 85” scheme.

At present the normal retirement age in local government is 65. But under the “rule of 85” around half of local government workers can apply to retire between 60 and 65 because their age and the number of years they have contributed to the scheme is at least 85.

Scottish workers face the same assault from 2006.

From April 2006 health workers face:

  • An increase in the normal retirement age from 60 to 65 for new workers and, from 2013, for existing workers.
  • an end to the final salary scheme for new workers, to be replaced with a career average scheme.
  • an attack on early retirement due to sickness.

From April 2006 civil service workers face:

  • a rise in the retirement age for new workers from 60 to 65.
  • an end to the final salary scheme — again replaced with a career average scheme.
  • from April 2013 the retirement age for all civil service workers will rise to 65. If you are now under 52, it will hit you!
  • From September 2006 teachers and FE lecturers face:

    • an increase in the retirement age for new entrants from 60 to 65.
    • new regulations which could lead to even fewer teachers being allowed to retire on health grounds.
    • from September 2013 the retirement age will rise to 65 for existing teachers. Any teacher currently aged under 52 will have to work until they are 65.

    For many public sector workers, a Green Paper proposes from 2008:

    • an increase in employee contributions from 6 to 7 percent.
    • a reduction in “pensionable pay” by excluding shift payments and contractual overtime from pension calculations.


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    Article information

    Features
    Fri 21 Jan 2005, 00:00 GMT
    Issue No. 1935a
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