FDA welcomes Government's lifetime pension guarantee - 18 October 2005

The Government's agreement that all existing civil servants and NHS staff can retain their existing pension age of 60 and current final salary scheme has been welcomed by the FDA, which represents senior managers and professionals in public service.

The FDA voted in March to take strike action against proposals to raise the pension aged from 60 to 65 and close the civil service final salary pension scheme. The action was called off when the Government agreed to negotiations led by the Secretary of State for Trade and Industry, Alan Johnson. The Government still intends that all new scheme joiners from an agreed date will have a new pension age of 65.

Jonathan Baume, FDA General Secretary, said:

"This is a significant compromise by the Government to meet the real concerns of the FDA and other public sector unions, and a vindication of the FDA's strategy over the past ten months since the Government first announced its intention to implement a new pension age of 65 and close the civil service final salary scheme.

"We recognise that longer life expectancy poses challenges to the existing pension age of 60, and we have always been willing to enter into constructive negotiations. But we made clear from the outset that existing staff should not have their pension arrangements changed against their will. The Government has now accepted this.

"We expect to enter into early negotiations in the civil service to redesign the current pension schemes. We are relieved that the Government has listened to reason and we hope that the coming round of negotiations can be concluded without any further recourse to industrial action."

Notes for Editors
1. The FDA is the trade union and professional body representing the UK's 16,000 senior civil and public servants. Our members include policy advisors, senior managers, tax inspectors, economists, statisticians, accountants, special advisers, government lawyers, diplomats, crown prosecutors and NHS managers.

2. The FDA should be referred to simply as "The FDA" and can be described as "the senior civil and public servants? union" or something similar. We hope you will avoid calling us the 'First Division Association' as this is not our name and causes all sorts of confusion with football clubs and the like. Thank you!

3. For further information contact: