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Pensions Commission Report published

The report of the Independent Public Service Pensions Commission (the Hutton Commission) is published today. It contains wide ranging proposals (which constitute recommendations and need not be implemented) relating to the design of public sector pension schemes. The Report contains nothing particularly unexpected (there was an interim report published in 2010) but at least one of the proposals will have a significant bearing on many members' pensions. The major proposals include:

  1. The total protection of benefits currently accrued (that is, paid for to date). Benefits paid to date would be continue to be based on the final salary mechanism
  2. A career averaged salary rather than a final salary mechanism (the important change) but with the protection referred to above
  3. The career averaged mechanism would uprate the annual contribution from teachers (and the employers) in line with an average earnings index during the accrual period (up to retiral date)
  4. When put into payment, pensions will continue to be upgraded annually in line with a Government imposed index
  5. There would be a ceiling to employer contributions with an agreed mechanism to determine funding arrangements if the ceiling would require to be breached
  6. There would be no single public sector pension scheme
  7. There should be a review of scheme management arrangements
  8. New proposals should be capable of being put into practice during the lifetime of this Parliament

Members will also be aware of the Government's clear intent to increases teacher contribution rates in three stages until contribution rates (currently 6.4% of salary) reach a figure above 9%.

Essentially the proposals will

  • Have no effect on those already retired or about to retire
  • Have minimal effect on those aged 50 or so (and who intend to retire at or before 60)
  • Have greater effect on those younger than 50 with increasing effect as age decreases
  • Have significant effect on those earning (or will earn) the largest salaries

Further information will follow as matters develop.

Jim Docherty

Depute General Secretary

Pensions - 03/10/2011

Teacher Union Gives Pension Proposals Variable Report

The SSTA, representing 8500 Scottish Secondary Teachers, today accepted much of the Independent Public Service Pensions Commission (the Hutton Report) but at the same time rejected one of the central proposals.

Speaking today in Edinburgh, SSTA General Secretary, Ann Ballinger commented on the report.

“Lord Hutton and the Commission members are to be congratulated on the scope, depth and readability of the Report. It contains wide ranging proposals which do substantially deal with all relevant issues and do provide a basis for an affordable but fair public sector pension strategy. The SSTA totally accepts that any pension system must be operated at an affordable level but points out that while the Government makes much of current funding costs, no such complaints were received when inflation ran into double figures and successive Governments were delighted to borrow employee contributions at interest rates hugely below those then prevailing.

“The Commission's Repost must, however, be seen in the current context of fund contribution rates. It is the Government's clear intent to raise employee contribution rates in three stages over the next few years. For teachers this would lead to a contribution rate of around 9.4% (or to put it in more stark terms, an increase of over 45%) at a time when wage increase will be nil or not much beyond that figure.

“In particular, the SSTA welcomes the confirmation that currently accrued benefits will be protected and that only contributions payable from some future date will be governed by any new mechanism.

“Where the SSTA does differ with the Commission is on the proposal that new benefits should be calculated on a career averaged salary basis rather than on the current final mechanism. The SSTA believes that significant increases to pensions caused by the larger salaries paid towards the end of a career should be financed (as the Commission partly accepts) by a tiered contribution rate. The SSTA totally rejects one clear error in the Report‘s conclusions which suggests that the final salary element of pension scheme design causes a barrier in labour mobility between public and private sectors. No such barrier is apparent.”

Welcoming large areas of the Commission's report, Mrs Ballinger added:

“The Commission accurately and decisively rejects many of the more extreme views provided in evidence particularly by those who see public sector pensions as no more than a drain on   resources rather than, as Lord Hutton points out, “an important element of remuneration”. The odious comparison with poorly performing private sector provision (which is no more than a comment on the skills of fund managers), is decisively rejected.

“The SSTA is delighted to take part in subsequent discussions (which the Report sees as essential) on any aspects of change to the design of public sector pension schemes.”

For further information contact:

Jim Docherty

Depute General Secretary

0131 313 7300

10 March 2011

Press Releases - 03/10/2011

Consultative Ballot regarding Proposed Changes to Conditions of Services

Due to a clerical error in the preparation of the ballot papers a small number of members will receive duplicate papers. Unfortunately we have not been able to identify exactly who received duplicate copies of the papers. We ask that members who do receive duplicate papers disregard them. The number of duplicate ballot papers issued should have no real impact on the result of the ballot.

Before any formal action is taken we will hold a formal ballot under TU legislation.

Information for Members - 03/09/2011

Review of teacher employment in Scotland

Professor McCormac, Chair of the Review of Teacher Employment, has issued a Call for Evidence to be submitted to the Review Group from interested parties.   Members are encouraged to give their opinions by complete the questionnaire.   Please remember that group replies are frequently given the same weighting as individual ones.   For that reason it is very important that as many members as possible respond giving their views.   The questionnaire can be found on the Scottish Government website at http://www.scotland.gov.uk/About/reviewofteacheremployment.

The Association will be submitting a response on behalf of members and will also post draft comments for members to use if they wish following the Salaries and Conditions of Service Committee meeting on the 21 March 2011.

Conditions of Service - 03/08/2011

Consultative Ballot regarding Proposed Changes to Conditions of Services

Dear Colleagues

Salaries and Conditions of Service Committee met on Wednesday 2 March 2011, where it was agreed that a consultative ballot of members employed in the state sector would take place in relation to the changes in conditions of service proposed by COLSA.   In addition to being asked if they support the proposals, members will be asked to consider whether industrial action should take place if the changes are imposed by COSLA.   Details of the proposed changes to conditions of service can be found on our website https://ssta.org.uk.

Ballot papers will be sent to home addresses at the beginning of the week commencing 7 March 2011.

Yours sincerely

Ann Ballinger

General Secretary

Conditions of Service - 03/04/2011

COSLA Proposal - Frequently Asked Questions

A list of frequently asked questions and answers regarding the COLSA Proposals has been produced for the information of members.   If you have a question that is not answered here please email SSTA HQ at info@ssta.org.uk.

Q1. Does the comment in section 2 of the document about ‘sufficient teaching posts for all probationers' mean that Probationers finishing is 2011 are guaranteed a job?
A. NO they are not. The comment in Section 2 refers to the number of jobs which would become available.   The Cabinet Secretary assures us that the jobs would be open to all registered teachers and subject to competitive interview using normal procedures. Appointments are, of course, under the control of the education authority.
Q2

 Does the change from lifetime conservation affect PTs or Deputes conserved as a result of amalgamation?
A.

 COSLA intends that this change will apply to all teachers employed by local authorities and in receipt of lifetime conservation.   Where conservation results from an amalgamation and redundancy could have applied members may be able to take legal action.   This would have to be tested at law and we have no definitive answer at present.   Legal advice is being sought on your behalf.   Head teachers in this position should, in the first instance, contact the SSTA for advice.
Q3 Would the 5 years of cash conservation apply to a teacher currently conserved?
A. Any teacher appointed before April 2001, whose salary would be reduced before 31 March 2013,   will be entitled to cash conservation until 31 March 2016.   Any teacher whose salary is reduced from 1 April 2013 would be entitled to cash conservation for 3 years from the date of the reduction.
Q4. What is cash conservation?
A.

 A teacher in receipt of ‘cash conservation' retains the higher salary for a period of time (normally 3 years) but does not receive any pay increases until the salary for the post reaches the level of the conserved salary, or the period of conservation ends.   At the end of the stipulated period the teacher's salary reverts to the national scale point for the post.
Q5. Does the move to 40 days annual leave mean I would lose holiday pay?   Would my holiday entitlement be reduced?
A. This is an attempt by COSLA to reduce the amount of holiday entitlement women accrue during maternity leave.   They have divided the leave year into 2 sections, contractual leave and school closure.   Permanent employees would continue to be paid in the usual way and at the same rate. Salary would continue during school closure days.   There would be an effect on supply staff whose daily rate would be higher but who would be paid for fewer holidays.
Q6. Would teachers still be paid during school closure?
A. Teachers who have permanent contracts would be paid as they are currently.   There would be no changes to frequency of payment or the amount as a result of this element of the proposal.
Q7. What would a teacher on point 6 of the pay-scale be paid for doing supply?
A. For supply cover of up to 8 days all teachers would be paid for 5.5 hrs per day at scale-point 1.   A complete working week is 35 hours, 7 hours per day.   From day 9 a supply teacher would be paid at their normal scale-point.
Q8. How would the changes to sick pay affect me?
A. Every day of sick leave would be paid at 90% of your normal salary.   The normal rules about length of entitlement would continue to apply.   The maximum payment would therefore be 26 weeks at 90% of full salary followed by 26 weeks at 45% of full salary.
Conditions of Service - 03/02/2011

COSLA Proposed Changes to Pay and Conditions

Dear Colleagues

The final proposal from COSLA detailing changes they wish to make to teachers' conditions of services are now available to download from here. Paper copies of this proposal and a ballot paper will be sent to all members working in the public sector during the next 10 days.   Please contact us if you have not received a ballot paper by 10 March.   The return date is 22 March 2011.

I must stress that this Association has reached no agreement with COSLA and our policy will be based solely on the stated views of members.

Please do not hesitate to contact me if you require further clarification.

With best wishes

Ann Ballinger

General Secretary

Conditions of Service - 02/28/2011

Timesheet to record Working hours

As an additional service to members and as a result of enquiries we have created a timesheet which can be used to record your working time during the year.   The spreadsheet programme does the calculations for you and new copies can be downloaded from here.

Our most recent survey showed that many members are working in excess of 45 hours per week.   This will allow you to maintain a record for your own use.   It will also enable you distinguish between contractual and voluntary tasks.   Please note:   you must ask a line manager to determine which tasks you should not complete if the allocated tasks do not fit the time available. If you have any questions please do not hesitate to contact the office on info@ssta.org.uk.

Guide on how to use the timesheet

All times must be entered in the 24 hour clock format of   hh:mm.

- Enter the number of hours you are contracted to work per week in the cell with the red border (F4). (i.e. 35 hours should be entered as 35:00)

- Enter the date (dd/mm/yyyy) of the Monday   in the week you wish to begin recording time in the cell with the purple border (B8)

- For the sheet to calculate the number of hours worked correctly you must follow the 3 rules below.

•   If you enter a time in the "Start Work" Column you must enter a time in the "Time Out (Lunch)" Column.

•   If you enter a time in the "Time In (Lunch)" Column you must enter a time in the "End Work" Column.

•   If you enter a time in the "Home Start" Column you must enter a time in the "Home Finish" Column.

Information for Members - 02/23/2011

Update on COSLA proposals

Dear Colleages

I regret to inform you that no progress as been made on SNCT negotiations or COSLA agenda because the COSLA representatives cancelled the meeting late on Wednesday. We do not, as yet, have a firm date for a replacement meeting but expect to meet next week.

I will, of course, contact you as soon as further information is available and the Association will continue to add updated information to the website.

If you have any questions or comments please don't hesitate to contact me at info@ssta.org.uk.

With best wishes

Yours sincerely

Ann Ballinger

General Secretary

18 February 2011

Conditions of Service - 02/18/2011

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