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Government To Raise Retirement Age To 66

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Millions of teachers, nurses, civil servants and members of the armed forces will be thousands of pounds poorer in retirement as well as having to work longer after ministers set out plans for the deepest cuts ever made to state employee pensions.

The starting offer in the government's negotiations, made privately to unions but leaked to the Guardian, reveals they are poised to adopt nearly all of the proposals in the independent report by Lord Hutton, the Labour ex-minister.

It proposed 6 million state employees should pay more in, work longer and receive smaller pensions while keeping the final-salary (defined benefit) scheme, which is more generous than most in the private sector. But sources close to the talks say the government's opening offer has further eroded the value of pensions.

Some unions are now clamouring for strike action, claiming the government has left them nothing to negotiate with.

Pensions is the only issue over which all unions could legally launch coordinated strike action. Civil service and education unions representing 750,000 people are already moving to a 30 June strike. Other unions have been awaiting the outcome of the formal negotiations at the end of next month before striking, but many of those have been angered by this first written offer, made last week.

The stakes were raised further on Thursday when two of the biggest and most militant unions, the Public and Commercial Services Union and Unite, signed an accord pledging to fight "vicious" spending cuts.

The leaked "discussion paper", written by the chief secretary to the treasury Danny Alexander, reveals that the government proposes to raise the retirement age to 66 for most state employees, and replace final salary schemes with pensions based on career salary averages. Contributions will increase by 3.3 percentage points with some protection for those earning less than £15,000 or £18,000.But it goes further, changing the rate of accruals so that the proportion of the average salary accrued for each year worked is reduced. Currently new teachers accrue one 60th of their final salary for every year they work, meaning they have to work for thirty years to receive half their annual salary in pension when they retire. The models in the paper suggest that this should rise to either one 80th, 90th or 100th, of the salary accrued for each year worked. It means some public sector workers would have to work ten years longer to get half of their average salary.

Treasury sources stressed that the paper was simply a discussion paper, and not the final formal offer and that the accruals rates should not be taken in isolation from the rest of the package as a sign of the scheme's generosity. But a source close to the talks said: "This is not the basis for negotiations and much, much worse than we expected."

Francis Maude, the Cabinet Office minister leading the talks, said in a speech to senior civil servants on Thursday that civil service pensions would "remain among the very best available" and that all pensions already accrued would be honoured. He added: "However, it is a fact that people are living longer, which means that pensions are costing significantly more. We cannot expect other taxpayers to fund the increased costs of our pensions, particularly at a time when for many of them their pension benefits have been significantly reduced."

Just how are we supposed to have an country run by geriatrics? This is doomed to fail, and remember that this is just the current government. This crisis is going to grow exponentially over the next few decades.

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Just how are we supposed to have an country run by geriatrics? This is doomed to fail, and remember that this is just the current government. This crisis is going to grow exponentially over the next few decades.

More importantly whats Beaker doing visiting No 10?

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All leading to a massive default. UK is toast, Britain is going down the pan as every VI is squeezing everything he can out of it while we don't have anybody in power with the spine to do what's needed. Probably toast anyway.

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Just how are we supposed to have an country run by geriatrics? This is doomed to fail, and remember that this is just the current government. This crisis is going to grow exponentially over the next few decades.

Someone called Polly Curtis wrote this article, but the fact that pensions have been calculated for years on 1/80th of final salary makes much of the article absurd.

"Currently new teachers accrue one 60th of their final salary for every year they work, meaning they have to work for thirty years to receive half their annual salary in pension when they retire"

This is simply wrong.

TP Teachers Pensions Handbook P.10 "You will get 1/80th of your final average salary for each year of reckonable service".

If Polly is right, someone owes me a lot of money. She ain't.

Edited by juvenal

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Just how are we supposed to have an country run by geriatrics? This is doomed to fail, and remember that this is just the current government. This crisis is going to grow exponentially over the next few decades.

Got to keep feeding the debt based ponzi machine. Make em work for another decade and maybe they can squeeze enough time out of it to pass the can to the next bunch of chancers to take power. That is if it doesnt collapse within the next year or two first.

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[Just how are we supposed to have an country run by geriatrics?

66 isn't geriatric, in the not too distant future people are going to have to get used to working later than 66.

In some cases they might have to take demotion or lower paid work as they get older, but enjoying a quarter century paid holiday at the end of your life, all at someone else's expense, just isn't an option any longer.

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Someone called Polly Curtis wrote this article, but the fact that pensions have been calculated for years on 1/80th of final salary makes much of the article absurd.

"Currently new teachers accrue one 60th of their final salary for every year they work, meaning they have to work for thirty years to receive half their annual salary in pension when they retire"

This is simply wrong.

TP Teachers Pensions Handbook P.10 "You will get 1/80th of your final average salary for each year of reckonable service".

If Polly is right, someone owes me a lot of money. She ain't.

The classic Civil Service scheme was 1/80 per year with a maximum of 40/80 (ie half salary pensions). I gather it has now got more complicated with people having the option to buy 1/60 year pensions but these require a much higher level of employee contribution. I believe the Civil Service also offers money purchase schemes as well now.

Edited by stormymonday_2011

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Just how are we supposed to have an country run by geriatrics? This is doomed to fail, and remember that this is just the current government. This crisis is going to grow exponentially over the next few decades.

Already a major issue in some parts of the Civil service.

I was told by a former Inland Revenue colleague that the average age of workers in HMRC Valuation Office Agency is now 52.

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Someone called Polly Curtis wrote this article, but the fact that pensions have been calculated for years on 1/80th of final salary makes much of the article absurd.

"Currently new teachers accrue one 60th of their final salary for every year they work, meaning they have to work for thirty years to receive half their annual salary in pension when they retire"

This is simply wrong.

TP Teachers Pensions Handbook P.10 "You will get 1/80th of your final average salary for each year of reckonable service".

If Polly is right, someone owes me a lot of money. She ain't.

Doesn't 1/30th just apply to the fire and police services?

As you say, most government workers have to put in 40 years for a full pension.

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Just how are we supposed to have an country run by geriatrics? This is doomed to fail, and remember that this is just the current government. This crisis is going to grow exponentially over the next few decades.

66 is hardly geriatric, Churchill didn't become Prime Minister until he was 64 (I think).

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66 is hardly geriatric, Churchill didn't become Prime Minister until he was 64 (I think).

don't give 'em ideas man!

B&Q should be ambition enough ;)

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Doesn't sound like an attractive proposition to me. Pay more money into your pension scheme, work longer & get a smaller pension at the end. They can piss off with that idea :rolleyes:

you reckon?

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so long as you are happy being rescued by 66 year old firemen, they cant all have back office jobs.

Once they turn their hoses on they will need to go on a pee break.

But hitting 66 doesn't mean stopping work altogether.

I'm seriously expecting that my retirement will be the hour I spend between stopping work and dying - and that'll probably be waiting for someone to notice I've fallen over.

For anyone under 50 retirement is going to be self-funded or not happen.

I suspect everyone on a pension now needs hurrying along the mortal coil else it's all going even more tits up than it is now.

Edited by SarahBell

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Shame, I will be giving up working for other people at 50 (I may do a few bits linked to hobbies). Work till your 66 to get a pension you will never be able to claim. Death or a mind numbing husk of your former self that no one wants to be around will be the result.

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For teachers who started after 2007, it is 1/60th per year, retire at 65.

For teachers who started before 2007, it is 1/80th per year, retire at 60.

See http://www.teacherspensions.co.uk/resources/pdf/User%20Guide/TPS%20-%20Member%20Guide%20(February%202011)%20(web).pdf

Someone called Polly Curtis wrote this article, but the fact that pensions have been calculated for years on 1/80th of final salary makes much of the article absurd.

"Currently new teachers accrue one 60th of their final salary for every year they work, meaning they have to work for thirty years to receive half their annual salary in pension when they retire"

This is simply wrong.

TP Teachers Pensions Handbook P.10 "You will get 1/80th of your final average salary for each year of reckonable service".

If Polly is right, someone owes me a lot of money. She ain't.

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66 is hardly geriatric, Churchill didn't become Prime Minister until he was 64 (I think).

Depends on what you have done for 40 years though.

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66 is hardly geriatric, Churchill didn't become Prime Minister until he was 64 (I think).

Indeed, and that rude bankster currently up on charges for being frisky with a dusky chambermaid is well past 65 and still going strong.

30 years ago and 70 was "old." These days old age kicks in at around 85.

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These days old age kicks in at around 85.

Haha. Too bad companies don't allow for lunch and high tea time naps for all the oldies.

Ain't gonna happen. Nobody is going to employee armies of aging folk, not if the young folk have any say in the manner.

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For teachers who started before 2007, it is 1/80th per year, retire at 60.

nice deal for those who joined just in time for the fantastic salaries of the noughties but not so late as to get the much poorer pension

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Haha. Too bad companies don't allow for lunch and high tea time naps for all the oldies.

Ain't gonna happen. Nobody is going to employee armies of aging folk, not if the young folk have any say in the manner.

Try sacking anyone over 50. Harder than sacking an Islington lesbian.

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  • 285 Brexit, House prices and Summer 2020

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