FDA rejects equality of misery - 9 December 2004

Many civil servants could see a huge fall in their future pensions, if proposals launched today are implemented, argued the FDA, the union for senior public sector managers and professionals. In a consultation document published today, the Government sets out its intention to create a new scheme that would force civil servants to work longer, contribute more and accept a lower pension than promised: one based on average career earnings rather than final salary.

Jonathan Baume, FDA General Secretary, said:
"Every head teacher, and senior manager in the NHS and local authorities should be under no illusion that it is only a matter of time before the Government turns its attention to their pension entitlements.

"The Government wants our members to accept what is likely to be an inferior pension, and the proposals allow Government a free hand to increase civil servants' contribution rates whenever they like.

"Those who lose most will be the most able, experienced, high-performing managers who are responsible for driving the Government's modernisation agenda across the UK. They are also those most likely to be poached by the private sector who will always find ways to reward their best talent. Undermining these managers' pension expectations is no way to recruit or motivate these key Government workers. The Government is unravelling the fabric of the moral contract between Government and our members who have served the public with dedication, loyalty and professionalism.

"We recognise that many private sector pension schemes have suffered in recent years due to market forces, mismanagement and employers' contribution holidays. The Government must take its share of the blame for this. However, we reject the argument that public sector workers must sacrifice their pensions as a consequence. Equality of misery is not an ideal this Government should be aspiring to.

"We also recognise that final salary schemes have their problems. For example, they do not always benefit people who take career breaks. However, this fault stems from pay inequality and other serious issues surrounding women at work, not simply pensions. The FDA has always been willing to look at these with the Government. Robbing some members to pay others is not the answer.

"The FDA is dismayed that the Government has tarted up these proposals under the guise that they will improve mobility across the public sector. Far from it - they are likely to undermine effective pension transfer procedures already in place.

"We believe that the Government still has presented no convincing argument for abolishing the final salary pension scheme for existing civil servants. The Government has acknowledged that our members receive lower salaries than comparators in the private sector. This is balanced in part by the existing pension provisions which are now under siege. People need a stable pension scheme so that they can plan for their future. They should not be subject to change at the Government's whim.

"Today we have only seen a bare outline of the Government's proposals. We anticipate extremely difficult and lengthy negotiations ahead, and we will be acting closely with unions in the civil service and wider public sector over the coming weeks and months."

ends

Notes for Editors
1. The FDA is the trade union and professional body representing the UK's 12,000 senior civil and public servants. Our members include policy advisors, senior managers, tax inspectors, economists, statisticians, accountants, special advisers, government lawyers, crown prosecutors and NHS managers.
2. For further information contact: