The Civil Service Pensioners' Alliance

The Government abolished the 10% tax rate for earned income and pensions from 07 April 2008. Those aged 65 or over will be compensated by increased age-related personal allowances and by a drop in the standard rate of tax from 22% to 20%. However, those under age 65 and on low incomes stand to lose up to about £200 a year in increased tax. Following our protests to Ministers and a considerable rebellion by Labour back bench MPs, the Government has announced that it intends to arrange compensation for those who are adversely affected and that the compensation will be backdated to 07 April 2008. Details of the compensation arrangements will not be known until the Government has had time to conduct a review but it is hoped that the necessary arrangements will be in place by the Autumn. In the meantime, we have written to Ministers stressing that all those adversely affected, including those retired before age 60 on grounds of ill health or redundancy, should receive adequate compensation, and not just those aged 60 - 64.

INFLATION

In March 2008 the RPI was 3.8%, the RPIX (RPI excluding mortgage interest payments) was 3.5% and the CPI was 2.5%.

In February 2008 average earnings (excluding bonuses) rose by 3.8% and average earnings (including bonuses) rose by 3.7%.

PENSION INCREASE FOR 2008

The September RPI determines the pension increase for the following April. Therefore, from 07 April 2008 both the state retirement and Civil Service pensions will increase by 3.9%.

THE NATIONAL INSURANCE FUND

A recent report by the Government Actuary Department showed that at the end of 2007-2008 the National Insurance Fund was in surplus to the tune of £46 billion. By the end of 2012-2013 the surplus is expected to rise to £114 billion. In January 2008 the Secretary of State for Work and Pensions said, in a reply to a Parliamentary Question, that the cost of increasing the basic state pension to the pension credit guarantee level would be £21 billion in 2008-2009.

OUTSTANDING CS PENSION ISSUES

The five long-outstanding Civil Service pension issues are:

We make representations on all these issues whenever the opportunity presents itself but we have recently been concentrating on the first two. Friendly MP's from all parties have assisted us with early day motions, which in the run-up to the General Election had attracted support from about 180 MP's. The latest EDM No. 499 was tabled just before the Parliamentary recess in the following terms:-

"That this House notes the ongoing campaign by the Civil Service Pensioners' Alliance to rectify the clear disparity between the classic Civil Service scheme provision and the improved provision available to newer pensioners through the premium scheme; is concerned that the classic scheme does not allow a pension for life for scheme members' widows and provides little or no income for widows of post-retirement marriages; acknowledges that this pension scheme now consists of a two-tier system that unfairly excludes some widows and widowers already on low incomes from the protections now deemed adequate and necessary for new scheme members and their spouses; urges the Government to widen the remit of its consultations on public sector pensions to include this important problem; and calls on the Government to protect the rights of pensioners in public sector pension schemes and to ensure that the oldest and most vulnerable scheme members and their spouses are guaranteed a financially secure retirement.'

For a full list of those who have, so far, signed please visit:- Parliamentary Information

NPC's PENSIONERS' CHARTER

Following the General Election, the NPC Pensioners' Parliament decided to convert their Pensioners' Manifesto into a long-term Pensioners' Charter. The Parliament again endorsed all the items in the manifesto and agreed that action should continue to secure their implementation. However, the Parliament agreed that the Charter should be shorter than the manifesto and in a form more easily understood by pensioners, the wider public, the media and politicians. It reads as follows:

"Towards a Pensioners' Charter.

Every man and woman on reaching state pensionable age will have the right to:

As a first step towards establishing these rights we call on the government to implement the Pensioners' Manifesto."

PENSION REFORM

In the light of proposals from the Pensions Commission, the Government has published a Pensions Bill, setting-out its proposals for long-term pension reform. The Government proposes a National Pensions Saving Scheme for those not in an occupational or private pension scheme; the re-linking of the basic state pensions to earnings at some time between 2012 and 2015; a reduction in the number of contributions required for a full state pension, together with improved credits for carers; reform of the State Second Pension so that it become flat rate, rather than earnings-related; an increase in the state pension age to 66 from 2024, to 67 from 2034 and to 68 from 2044; and a streamlining of the regulatory environment.

Whilst the proposals will improve the overall pension position in the longer term, they will do nothing for existing pensioners in the short to medium term. Therefore, the Alliance is supporting the National Pensioners' Convention in its call for a basic state pension of £119.05 per week for a single pensioner, to be paid now to all pensioners and then to rise annually in line with increases in average earnings.

Both the Alliance and the NPC will be trying to persuade MPs to amend the Bill to include the improvements set-out in the previous paragraph. Friendly MPs have formulated EDM 658 (2008) in the following terms:-

"That this House pays tribute to the pension pioneers who campaigned from 1898 until 1908 to secure the first old age state pension; acknowledges the importance of the state recognising it has a responsibility to provide a decent income in retirement for all without resort to means-testing; expresses concern that after 100 years the state pension is still significantly below the official poverty level; and calls on the Government to mark the centenary of the state pension in 2008 by raising the basic state pension for all pensioners above the official poverty level and restoring its link with earnings or prices, whichever is the greater."

We invite members to ask their MPs to add their signature to and to actively support the aims of Early Day Motion 658 (2008).

	CIVIL SERVICE PENSIONERS' ALLIANCE To receive this news by e-mail, please complete the form on our "stay informed" page.
ACCESSIBILITY / HIDE Font size M L XL XXL Style switcher Original Hi Contrast Reset All styles home membership challenge campaigns services stay informed the pensioner cspa newsletters group newsletters contact groups NI Branch links accessibility CSPA First Floor, 102-104, Park Lane, Croydon, Surrey, CR0 1JB Tel: 020 8688 8418 E-mail: enquiries@cspa.co.uk	NEW ADDRESS On Tuesday 18 December 2007 CSPA Headquarters moved to a new office. Our new postal address is CSPA, First Floor, 102-104, Park Lane, Croydon, Surrey, CR0 1JB. Our new office is South of the Fairfield Halls, about ten minutes walk from East Croydon railway station. We have retained our old e-mail addresses and telephone and fax numbers and these are now up and running.
	ABOLITION OF THE 10% INCOME TAX RATE The Government abolished the 10% tax rate for earned income and pensions from 07 April 2008. Those aged 65 or over will be compensated by increased age-related personal allowances and by a drop in the standard rate of tax from 22% to 20%. However, those under age 65 and on low incomes stand to lose up to about £200 a year in increased tax. Following our protests to Ministers and a considerable rebellion by Labour back bench MPs, the Government has announced that it intends to arrange compensation for those who are adversely affected and that the compensation will be backdated to 07 April 2008. Details of the compensation arrangements will not be known until the Government has had time to conduct a review but it is hoped that the necessary arrangements will be in place by the Autumn. In the meantime, we have written to Ministers stressing that all those adversely affected, including those retired before age 60 on grounds of ill health or redundancy, should receive adequate compensation, and not just those aged 60 - 64. INFLATION In March 2008 the RPI was 3.8%, the RPIX (RPI excluding mortgage interest payments) was 3.5% and the CPI was 2.5%. In February 2008 average earnings (excluding bonuses) rose by 3.8% and average earnings (including bonuses) rose by 3.7%. PENSION INCREASE FOR 2008 The September RPI determines the pension increase for the following April. Therefore, from 07 April 2008 both the state retirement and Civil Service pensions will increase by 3.9%. THE NATIONAL INSURANCE FUND A recent report by the Government Actuary Department showed that at the end of 2007-2008 the National Insurance Fund was in surplus to the tune of £46 billion. By the end of 2012-2013 the surplus is expected to rise to £114 billion. In January 2008 the Secretary of State for Work and Pensions said, in a reply to a Parliamentary Question, that the cost of increasing the basic state pension to the pension credit guarantee level would be £21 billion in 2008-2009. OUTSTANDING CS PENSION ISSUES The five long-outstanding Civil Service pension issues are: Widow's/widower's pensions for life, irrespective of re-marriage or co-habitation; Pensions for widows/ widowers of post retirement marriages; Pre-1948 service to count in full; The National Insurance Modification to be scrapped; and Pay-pause victims to be recompensed. We make representations on all these issues whenever the opportunity presents itself but we have recently been concentrating on the first two. Friendly MP's from all parties have assisted us with early day motions, which in the run-up to the General Election had attracted support from about 180 MP's. The latest EDM No. 499 was tabled just before the Parliamentary recess in the following terms:- "That this House notes the ongoing campaign by the Civil Service Pensioners' Alliance to rectify the clear disparity between the classic Civil Service scheme provision and the improved provision available to newer pensioners through the premium scheme; is concerned that the classic scheme does not allow a pension for life for scheme members' widows and provides little or no income for widows of post-retirement marriages; acknowledges that this pension scheme now consists of a two-tier system that unfairly excludes some widows and widowers already on low incomes from the protections now deemed adequate and necessary for new scheme members and their spouses; urges the Government to widen the remit of its consultations on public sector pensions to include this important problem; and calls on the Government to protect the rights of pensioners in public sector pension schemes and to ensure that the oldest and most vulnerable scheme members and their spouses are guaranteed a financially secure retirement.' For a full list of those who have, so far, signed please visit:- Parliamentary Information NPC's PENSIONERS' CHARTER Following the General Election, the NPC Pensioners' Parliament decided to convert their Pensioners' Manifesto into a long-term Pensioners' Charter. The Parliament again endorsed all the items in the manifesto and agreed that action should continue to secure their implementation. However, the Parliament agreed that the Charter should be shorter than the manifesto and in a form more easily understood by pensioners, the wider public, the media and politicians. It reads as follows: "Towards a Pensioners' Charter. Every man and woman on reaching state pensionable age will have the right to: a basic state pension set above the official poverty level and linked to average male earnings, a warm and comfortable home, free health care treatment based on clinical need and an annual comprehensive health check, free community care and services to assist living at home, free long-term care, free nationwide travel on all public and local transport, free education, access to and participation in leisure and cultural activities, goods, services and benefits without age discrimination, active engagement and consultation on national and local issues affecting older citizens, advocacy, dignity, respect and fair treatment in all aspects of their lives, As a first step towards establishing these rights we call on the government to implement the Pensioners' Manifesto." PENSION REFORM In the light of proposals from the Pensions Commission, the Government has published a Pensions Bill, setting-out its proposals for long-term pension reform. The Government proposes a National Pensions Saving Scheme for those not in an occupational or private pension scheme; the re-linking of the basic state pensions to earnings at some time between 2012 and 2015; a reduction in the number of contributions required for a full state pension, together with improved credits for carers; reform of the State Second Pension so that it become flat rate, rather than earnings-related; an increase in the state pension age to 66 from 2024, to 67 from 2034 and to 68 from 2044; and a streamlining of the regulatory environment. Whilst the proposals will improve the overall pension position in the longer term, they will do nothing for existing pensioners in the short to medium term. Therefore, the Alliance is supporting the National Pensioners' Convention in its call for a basic state pension of £119.05 per week for a single pensioner, to be paid now to all pensioners and then to rise annually in line with increases in average earnings. Both the Alliance and the NPC will be trying to persuade MPs to amend the Bill to include the improvements set-out in the previous paragraph. Friendly MPs have formulated EDM 658 (2008) in the following terms:- "That this House pays tribute to the pension pioneers who campaigned from 1898 until 1908 to secure the first old age state pension; acknowledges the importance of the state recognising it has a responsibility to provide a decent income in retirement for all without resort to means-testing; expresses concern that after 100 years the state pension is still significantly below the official poverty level; and calls on the Government to mark the centenary of the state pension in 2008 by raising the basic state pension for all pensioners above the official poverty level and restoring its link with earnings or prices, whichever is the greater." We invite members to ask their MPs to add their signature to and to actively support the aims of Early Day Motion 658 (2008).

CIVIL SERVICE PENSIONERS' ALLIANCE

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