PARLIAMENTARY EARLY DAY MOTION
PUBLIC SECTOR PENSIONS (No. 2) (22 June 2011)

That this House notes that through agreement with the trade unions in 2006, there have been significant long-term reforms made to the main public service pension schemes, including increased pension ages for new members and a career average pension scheme in the Civil Service; further notes the Government Actuary's Department's projection that these changes will mean that public service pensions expenditure will fall gradually from 1.9 per cent. of gross domestic product (GDP) in 2010-11, to 1.4 per cent. of GDP in 2059-60; observes that public sector workers are already undergoing a two year pay freeze at a time of high inflation; further notes that Government proposals to increase employee pension contributions and the pension age of existing employees, as well as reducing future pension benefits, will mean that public sector workers are facing large reductions in the value of their current pay and future pension provision; is concerned that the 2010 Comprehensive Spending Review's 1.8 billion increase in employee pension contributions conflates public sector pension policy with the Government's deficit reduction plans and is effectively an additional tax on public sector workers; recognises the right of public sector unions to take strike action in defence of their pensions; and calls on the Government to withdraw the current proposals and approach any future changes to pension through consensus and agreement with trade unions, recognising the long-term costs and benefits attached to public sector pensions.

Sponsored by:
John McDonnell (Labour)