NEWS RELEASE
Sunday 13 June 2004
STUC PAY UP FOR PENSIONS MARCH AND RALLY EDINBURGH, SATURDAY 19 JUNE
The Scottish Trades Union Congress is to hold a rally in Edinburgh this weekend to highlight the continuing crisis in occupational pensions provision and the need for further improvements in the state pension to avoid increased poverty in retirement.
Ian Tasker, STUC Assistant Secretary said,
" The Government has clearly stated that it intends to transfer the main burden of pension provision from the state to private or occupational pensions".
"The STUC believes that the state pension should always be seen as the cornerstone of providing income in retirement and it is not acceptable to transfer this responsibility to the employers, especially at a time when countless organisations are continuing to close their final salary schemes to new, and sometimes even existing members".
"Final salary schemes are the most advantageous arrangements for individuals and employers are replacing them with higher risk money purchase schemes with the member receiving a pension pot on retirement to purchase annuities".
"Our view is that while the burden on provision becomes the responsibility of employers, the employers are transferring the risk from themselves to the individuals, this is unacceptable and the Government has to reconsider its pension strategy".
We are also calling for the Government to consider compulsory pension contributions that would boost the take up of stakeholder
Tel: 0141 337 8100 / Fax: 0141 337 8101 www.stuc.org.uk
pensions, a product that we believe has turned into nothing more than a tax efficient saving vehicle for higher earners".
There is also a requirement to address the inequalities in both state and occupational pension provision that discriminates against workers, mainly women who do not make full national insurance contributions throughout their working lives".
Ends
For further comment, please contact :
Ian Tasker
Notes to Editors:
1) The march starts in East Market Street,assemble at 10.30 for march off at 11.00 and proceeds via Market Street, Waverly Bridge, Princes Street, Lothian Road, Kings Stables Road into Princes Street Gardens for a short rally in the Ross Theatre.
2) Speakers include:
John Quigley, Amicus Regional Secretary, Pauline Minnery, STUC Youth Committee, Phylis Heriot, Scottish Pensioners Forum, Sandra Osborne MP for Ayr.
3) Key points from the General Council Motion passed at Congress are attached as an appendix.
Tel: 0141 337 8100 / Fax: 0141 337 8101 www.stuc.org.uk
Appendix
The General Council motion carried at out Congress in April calls on the STUC to:
· seek from the Government commitment to protect final salary schemes in the public sector;
· oppose moves to implement a common pension age of 65 across the public sector and to encourage and support public sector union work in lobbying and campaigning on this issue;
· ensure the maximum communication amongst public sector unions to permit the sharing of information as pension scheme negotiations proceed;
· work with employers to encourage public servants to remain in their final salary schemes rather than make their own private provision;
· bring about end to public sector scheme rules that discriminate between married and unmarried couples;
· ensure that best practice and the most favourable elements of individual pension schemes are shared amongst all unions in the forthcoming period.
· take all necessary action to discourage private sector employers from closing final salary schemes and to resist imposition of any detrimental changes to pension benefits;
· lobby government to introduce legislation that provides adequate protection for workers in cases of liquidation and insolvency, such a scheme should be underwritten by government;
· lobby government for a review of the FRS17 accounting standard and the impact this has on well funded pension schemes;
· lobby government to introduce tax incentives for pensions schemes and review current taxation measures that act as disincentives;
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· campaign for training for member nominated trustees, specifically to address pension fund investments;
· campaign for legislation ahead of the implementation of the Information and Consultation Directive in 2005 to ensure that employers engage with trade unions on pension issues;
· work with the TUC to heighten the campaign for compulsion in respect of pension contributions, and for a minimum compulsory employer contributions to workers' pension schemes, with a target of 10 percent;
· the introduction of measures such as employer pension insurance to ensure scheme members are not deprived of all benefits by failing, discontinued schemes;
· campaign for pension scheme membership to be a condition of employment;
· involve young people's campaigning organisations such as the STUC Youth Committee and NUS Scotland in all campaigning activity relating to the pensions issue and in particular assist them to produce a pensions information pack for young workers, and support them in organising a conference entitled `Pensions - Issues for Our Generation;
· campaign for the legal definition of pensions as `deferred pay' for the purposes of statutory bargaining rights for trade unions and for enhanced protection during TUPE transfers;
· lobby government to ensure that surpluses in occupational pension scheme funds are distributed as block payments or increased benefits to scheme members;
· campaign in conjunction with the Close the Gap project to highlight the inequalities faced by women in Scotland as a result of lower income in retirement and lobby the Government to address the issues outlined in the Green Paper;
· ensure pensions are paid without abatement on reaching current contractual retirement age in the event of pressure by employers to introduce a later retirement age;
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· work with the TUC to ensure, as far as possible that campaigning is co-ordinated and consider a national day of action in 2004 to unite public and private sector unions, along with the Scottish Pensioners Forum, the National Pensioners Convention and other pensioner organisations in the fight for improved occupational and state pension provision;
· campaign for a fundamental revision of UK Trust Laws by the UK Government to allow greater freedom to invest ethically coupled with measures to democratise pension funds and give workers and policy holders a bigger say over investment strategies;
· continue to campaign for an adequate basic state pension, linked to average earnings, sufficient to live on with dignity without recourse to means testing.