Government makes announcement on long-term pension reform

On Wednesday 2 November chief secretary to the Treasury Danny Alexander announced to public sector unions new proposals on long-term pension reform. The unions - including the FDA - later agreed a statement.

The Government's proposals included an improvement to the accrual rate in any new scheme from 65ths to 60ths and an offer to provide transitional protection for those closest to retirement. The government is also offering a commitment that no further reforms to scheme design and contribution rates would be made "for at least the next 25 years". This is, however, linked to the agreement on pension age moving beyond 65 in line with State Pension Age in the future.

FDA general secretary Jonathan Baume said: "It is regrettable that this development has not come sooner, not least because of the very tight timescales the Government has set for reaching agreement. It will inevitably take some time to consider the full implications of these new proposals for the negotiations taking place in the civil service and across the various other public sector schemes.

"Meanwhile, it is vital that the campaign and ballot for industrial action focussed on the TUC Day of Action on 30 November continues as planned, and members are urged to vote 'Yes'. The FDA will review the position in the light of the forthcoming negotiations and the outcome of the ballot result."