Concern employers will find money from austerity budgets or will reduce employee benefits
The government must not expect public sector employers to fund increased pension contributions following an announcement earlier this week that payments must rise because of accounting changes forced on the scheme by HM Treasury, according to an Emergency Motion at the TUC Conference ((9-12 September, Manchester) proposed by the Society of Radiographers.
In an update to parliament, Elizabeth Truss, chief secretary to the Treasury, said that the cost of public service pension schemes, including those covering NHS workers, firefighters, civil servants, and teachers, would have to rise and employers would be required to pay more.
“Our concern is that this change is a unilateral, technical decision made by government that will significantly increase pension costs for employers at a time when public services continue to suffer from the effects of years of austerity,” commented Paul Moloney, the Society’s industrial relations manager.
“Unless the government fully funds the increase in contributions, employers may be tempted to introduce cheaper pension provision, or further cut public services that have already been damaged and destroyed by repeated budget cuts,” he continued.