We all face threat to pensions – not just new entrants
Brian Cantor, chair of the Employers Pensions Forum, recently expressed his opinion on “the need to bring final-salary provision to an end”, (THES Letters, 17 March).
But the employers’ proposals thus far articulate an intention to end final-salary pensions for new entrants only (and ‘new entrants’ of course, includes those who have career breaks). So should we now understand that the ultimate intention is to bring all of our pensions out of the final-salary scheme?
UCU have all along pointed out that if we now acquiesce to the employers’ desire that new entrants should accept career-average instead of final-salary, then eventually they will return to argue that a two-tier system is unfair, and that we should all be downgraded to career-average. Cantor’s statement would seem to indicate that is a real threat: If we let these proposals through – causing detriment of up to £10,ooo per year in retirement – then we will all eventually face financial detriment in retirement.
How will the proposed changes affect you? Download the UCU leaflet