PPI accuses Hutton of overlooking past reform

Chris Curry said existing cost-sharing and cost-capping arrangements had not been taken into account by the public sector pensions commission.

These deals – such as the cap and share agreement negotiated in the teachers’ pension schemes – had ensured certain unanticipated future increases in costs would be shared between employer and member.

“That was a reform that hasn’t really been appreciated by the Hutton team,” he told the Chartered Institute of Public Finance and Accountancy Pensions Summit, where he was presenting the PPI’s report for Hutton.

“Cost-sharing allocates unanticipated increases in the costs of the scheme 50:50 between the employer and the member,” reads the report. 

“Cost-capping limits the employer contributions at a certain level, unanticipated costs above this level may fall fully on the members.”

The Association of Teachers and Lecturers announced on Monday it was preparing for a national ballot of members over pensions changes.

A statement said it was “outraged” at the prospect of a 3.4% increase in pension contributions by 2014. 

“They are particularly incensed since only four years ago they agreed to changes to the teachers’ pension scheme to ensure it was both affordable and sustainable,” it said.

And fellow teacher unions the National Union of Teachers (NUT), the University College Union and Public Commercial Services Union have also declared their readiness to ballot members over direct action, according to a Socialist Worker online piece  by NUT executive committee member Nick Grant.