Retirement Age Will Rise, Govt To Confirm - Sky News

6:30am UK, Friday June 17, 2011

The public sector retirement age is to rise to 66, the Government will say for the first time today.

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Plans to base pensions on average salaries and increase contributions - to an average of 3.2% - will also be announced by Chief Secretary to the Treasury Danny Alexander.

The proposals will see the public sector retirement age linked to the state pension age of 66, with the exception of the police, army and fire service.

In a move devised to undermine union chiefs, Mr Alexander will also warn it would be a "colossal mistake" to reject the best deal the Government will offer for "many years to come".

It comes as the National Association of Head Teachers prepares to announce if their members will be balloted on industrial action over pension cuts.

That case is simple. People are living much longer - the average 60 year old is living 10 years longer now than they did in the 70s.

Chief Secretary to the Treasury Danny Alexander

A vote for strikes will see them join Public and Commercial Services (PCS), National Union of Teachers and Association of Teachers and Lecturers members on the picket line.

Up to 750,000 teachers and civil servants are already planning to walk out on June 30, during what is being labelled a 'summer of strikes'.

While criticising unions, Mr Alexander will also urge rank-and-file members to help "shape" the current reforms now or face "uncompromising" change later.

But he will also rule out increased pension contributions for those with salaries of less than £15,000 and impose a cap of 1.5% for workers picking up less than £18,000.

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"There is an indisputable case for reforming public sector pensions to ensure that they are affordable and sustainable but still amongst the very best available," he will say.

"That case is simple. People are living much longer - the average 60-year-old is living 10 years longer now than they did in the '70s.

"This advance comes at a price. It is unjustifiable to ask the taxpayer to work longer and pay more so that public sector workers can retire earlier and receive more themselves."

Mr Alexander will also point out that although a majority of those union members who voted did opt for industrial action, that still represented a minority of total member numbers.

Hundreds of thousands of workers could strike on June 30

PCS union general secretary Mark Serwotka described the changes as "absolute daylight robbery".

"I don't think it's surprising that people will want to defend themselves and if you're going to defend yourselves it obviously makes sense that you make common cause with council workers, health workers and teachers because we all face the same attacks," he said.

The existing retirement age for most public sector workers is 60.

The planned strikes are set to close schools and sixth form colleges, jobcentres, government offices and courts.

They will also involve prison staff, police community support officers, immigration officials and DVLA staff.