Thousands of teachers lobby MPs over pensions cuts

In a letter seen by schemeXpert.com , the teachers said increasing pension contributions “risks deterring teachers, particularly those at the beginning of their careers, from saving for their retirement”.

In addition, they also asked their MPs to oppose the change in pension indexation from the retail price index (RPI) to the consumer price index (CPI).

Over the past ten years, CPI has been consistently lower than RPI. And inflation figures released this week showed CPI running at 3.1% in September, against 4.6% for RPI. Last month’s inflation figures will be used to determine next April’s benefit rises.

Christine Blower, general secretary of the NUT, noted a retired teacher on a £10,000 pension will receive a pension increase that is £150 lower under this proposal than they would ordinarily have received.

“This is the first in an annual series of cumulative losses that will eventually lead, we estimate, to a total of £35,000 lost over 25 years. The NUT believes this to be a breach of accrued rights as well as a breach of an election promise,” she added.

The teachers recalled in the letter that, before the elections, political parties said accrued pension rights would be honoured.

The Hutton report – a public sector pensions’ review commissioned by the coalition government – will produce final recommendations for structural reforms of state employees’ retirement benefits next year.

Its interim results published on October 7 clearly suggest an increase of members contributions would be the most effective way to make short-term savings.

In addition, the report said the change in the indexation measure will reduce the value of pension benefits by around 15% on average across the public sector.

“When this change is combined with other reforms to date across the major schemes the value to current members of reformed schemes with CPI indexation is, on average, around 25% less than the pre-reform schemes with RPI indexation,” it said.

Commenting on potential strikes, Blower said: "No union takes industrial action lightly but it must remain an option on which we will take a decision in the light of the final report and our members' reaction."