PENSIONS - PowerPoint PPT Presentation

1 / 30
About This Presentation
Title:

PENSIONS

Description:

IT IS A BARE BONES PRESENTATION AND LOOKS AT STATE PENSIONS IN THE PAST NOW AND FUTURE ... THE BOAR WAR. 11th of October 1899 saw the outset of the Boar War. ... – PowerPoint PPT presentation

Number of Views:42
Avg rating:3.0/5.0
Slides: 31
Provided by: cwu3
Learn more at: http://www.cwu.org
Category:
Tags: pensions | boar

less

Transcript and Presenter's Notes

Title: PENSIONS


1
PENSIONS TURNER REPORT
  • THIS PRESENTATION DOES NOT DEAL WITH SUCH PENSION
    SCHEMES AS ROYAL MAIL BT OR OTHER UNION
    REPRESENTED COMPANIES .
  • IT IS A BARE BONES PRESENTATION AND LOOKS AT
    STATE PENSIONS IN THE PAST NOW AND FUTURE
  • IF TURNER IS THE FUTURE ?

2
AGITATION
  • 1670s Idea of Organised Pensions Born with Scheme
    for RN Officers Life Expectancy at Birth was
    48.
  • By the Start of the 20th Century Life Expectancy
    was about 49 years for Women and 45 years for
    Men.
  • Agitation for National Pension prior to General
    Election of 1885
  • Rev Herbert Stead Browning hall Southwark
  • Pensions mentioned at Election but no action
  • 1898 Royal Commission- 2 Million over 65

3
COMMISSION FINDINGS
  • 1.3 million in want
  • Commission finding. Nothing can be done
  • However, 1898 New Zealand grant pensions for
    over 65s
  • 35p per week
  • London Agent General New Zealand speaks on
    issue at Browning Hall

4
CAMPAIGN FOR PENSION
  • Following Browning Hall Meeting, many others
    followed.
  • London,
  • Newcastle
  • Durham,
  • Leeds
  • Manchester Birmingham

5
TRADE UNION INVOLVEMENT
  • Newcastle meeting,
  • 37 delegates from Trade Unions, 29 Co-ops
  • 3 Trades Councils and Visitors
  • Unanimous demand for a Universal and non
    contributory pension to be funded out of general
    taxation.

6
LEEDS AND MANCHESTER
  • Leeds meeting argued that unemployment a more
    pressing issue, but pension argument held the
    day.
  • Manchester meeting attended by 29 Trade Councils,
    12 Trade Unions, Co-ops and 3 Friendly
    Societies. Agreed to support Universal pensions
    funded out of General taxation.

7
BIRMINGHAM GLASGOW
  • Both cities held huge meetings.
  • Glasgow meeting attended by over 200 Delegates
  • Also large meeting in Bristol.
  • As a result of meetings, a National Pensions
    Committee was elected and campaigned for pensions
    at 65 and 25p for both men and women.

8
SELECT COMMITTEE
  • Joseph Chamberlain appoints a Select Committee to
    look into the demand.
  • Baulked at the idea of a Universal pension
    claiming to great a demand on the public purse.
  • 17 MPs sat on the Committee.
  • However, pensions now in the public arena.

9
THE AGITATORS
  • Although looking for change through legislation,
    the agitators were mainly from the trade union
    movement supported by some in the churches.
  • May 1st 1899 Charles booth publishes a pamphlet
    demanding pensions at 70 with 35p for men and 25p
    for women

10
NATIONAL PENSIONS COMMITTEE
  • Appoints a full time organiser.
  • Fred Rogers the leader of the Vellum Binders
    Union.
  • Lived in Whitechapel.
  • A pioneer of Adult Education and President of the
    East London Workings Club
  • Began life as an errand boy.

11
THE BOAR WAR
  • 11th of October 1899 saw the outset of the Boar
    War.
  • This had the effect of putting any possible
    legislation regarding pensions off the Political
    agenda.
  • However, on the 1st August 1908 saw the Royal
    Assent for the Old Age Pensions Act.

12
SUCCESS
  • But for outside agitation from workers and the
    church, neither the Liberal or the Tories would
    have enacted the Legislation.
  • Paradox is that pensions became known as the
    Lloyd George.
  • On the 1st January 1909 the Age Pensions Act of
    1908 introduced the first general, non
    contributory system under which between 10p and
    25p a week was paid from age 70 on a means tested
    basis.

13
WHO COLLECTED.
  • Over half a million individual collected their
    first National Pensions.
  • 1700 collected their pension in Southwark where
    the agitation first began in 1885, 24 years
    previously.
  • 1925 The Contributory Pensions Act set up a
    contributory scheme for manual workers and others
    earning up to 250 a year. The Pension was 50p
    per week at 60

14
PENSION RISES
  • Life Expectancy had risen for Women to 64 and Men
    to 59 by 1941.
  • 1942 saw the Beveridge report which set the
    fundamental principle of universal provision of a
    Basic Pension.
  • 1946 National Insurance act introduced a
    contributory state pension for all.

15
PENSIONS
  • Pensions, from 1948, were 1-30 a week for a
    single person and 2-50 for a married couple paid
    from age 65 for men, 60 for women.
  • 1959 National Insurance Act graduated pension
  • 1970 Life expectancy for Women was 74 and for Men
    69

16
PENSIONS
  • 1975 Social Security Act set up the State
    Earnings Related Pension Scheme (SERPS) which in
    1978 replaced graduated pensions.
  • 1980 The Social Security Act broke the link
    between State Pensions increases and average
    earnings. If the Conservative Government of the
    time had not broken the link a single pensioner
    would now be worth around
  • 30-00 a week more.

17
WHERE ARE WE NOW?
  • Some findings from Age Audit 2004
  • 2.2m pensioners live below the poverty line
  • 1.5m are malnourished or at serious risk
  • 1.5 believe their house is to cold in winter
  • Last year 22,000 older people died as a result of
    cold.
  • 5m pensioners suffer long term illness that
    restricts their daily activities.

18
CONCLUSION
  • A very great need to look at the Pension
    provision for our grander generation was but one
    of the conclusions of Government.
  • A pensions Committee was set up in response to a
    crisis of confidence over Pension Provision..
  • Headed by Adair Turner
  • Included Jeannie Drake and Professor John Hills

19
TERMS OF REFERENCE
  • Were the investigating private pensions and Long
    term savings, advising the Government on whether
    there was a need to move beyond the voluntary
    approach to private pension provision. To look
    at and address the problems facing people with
    interrupted paid work records and caring
    responsibilities, especially women.

20
SO WHAT IS THE SITUATION AT AT APRIL 2006
  • Current single persons Basic State Pension is
    84-25
  • Couples BSP based on Husbands contributions
    134-75
  • Wife own pension based on Husbands contributions
    50-50
  • Category D Pension over 80 50-50
  • If all income is below thresholds stated below
    income topped up by Pension Credit to 114-05
    single person and 174- 05 Couple.

21
AS AT APRIL 2006
  • Yet quoted Poverty level for a Single person is
    123-00 a week ??
  • Life Expectancy is 81 Women 77 Men
  • So lets look at Turners proposals in more depth-
  • Understanding that his brief is also to take into
    account longevity and the fact that the birth
    rate is falling. This leading to a decline in
    National Insurance Contributions in the longer
    term but with a greater cost in supporting
    pensions.

22
TURNERs MAIN PROPOSALSs
  • They do nothing immediately for todays
    Pensioners
  • Proposes the creation of a National Pension
    Saving Scheme. Basically a Wage earner paying in
    5 of Salary with Employer paying in 3 Minimum
    coupled with Government tax relief to wage Earner
    reducing amount to 4.
  • Contributors need to opt out rather than in. Age
    being considered for joining NPSS is 25
  • No need to join NPSS if in Occupational Pension
    Scheme But may wish to consider options.

23
TURNERS PROPOSALS
  • In 2010 Proposed Pension Increases related to
    Average Earnings growth Rather than price rises
    or 2.5 Max as is current since Mrs Thatcher
    broke the link in 1980.
  • NPC calculate that on top of a usual 2.5 rise it
    would mean a 1-36 a week more for that year.

24
TURNERS PROPOSALS
  • Proposed rises in Pension Age
  • 66 in 2030
  • 67 in 2040
  • 68/69 in 2050
  • Remembering Womens Pension Age Rises to 65 by
    2020.

25
TURNERS PROPOSALS
  • Provides Full Basic State Pension to Pensioners
    at 75 onwards. SUBJECT TO A DATE BEING SET.
  • This would end the unequal payment of pensions
    top Pensioners of that Age Group.
  • Proposal to provide equality of Pensions for
    Women, Carers Interrupted paid work records of
    pension age by 2050. State pension being based on
    the Universal principle rather than the amount of
    NI contributions made.

26
AN EXAMPLE OF HOW NPSS WILL WORK
  • You would pay 5 of your Salary between 5,000
    33,000
  • The Employer a Minimum of 3
  • Government will give Basic Rate Tax relief at
    22. This in effect reduces amount you pay out to
    4
  • Assume you are paid National Average wage
    considered 23,000 a year. You would pay 730 a
    year your employer550 and tax relief 180 in
    all that is 1,460 a year.

27
Example of How NPSS Works
  • Turner estimates that if someone on this wage
    started saving into NPSS at 35, the estimated
    fund at retirement would be about 55,000. This
    would give an Annual Pension of around 3,000
    today.
  • If the person started saving into the scheme at
    age 25 it is estimated his/her pension would be
    around 4,400 or
  • 84-60 weekly

28
What it means to a person aged 23
  • Retirement Age Anybody now under 30 would be
    hit by the rise in retirement age from 65 to 67
    under Turners proposals. If they are under 20
    Turner expects them to work until they are 68
  • State Pension currently 84-25 for a single
    person would rise to about 20/25 of median
    earnings by 2045 or more like todays 109-45
  • Additional Pension Current second pension would
    continue but play a less important role, and be
    worth 10 of Median earnings on retirement.

29
Person Aged 23 Continued
  • Young Adults would be encouraged to join NPSS if
    not in a company scheme. If they earnt 23,000 a
    year and started saving at 25 this would give
    them a pension of 4,400 a year - 84-60 weekly
  • So with the basic State Pension, State Second
    Pension NPSS together it should be worth 45 of
    their final salary.
  • State Basic Pension (assume) 109-45
  • Current Second Pension 44-23
  • NPSS
    84-60
  • Total Assumed Pension 238-28
  • NOT A LOT WHEN YOU CONSIDER ITS A PENSION FOR 42
    YEARS TIME !!!

30
WHAT IS THE CWU POLICY
  • Full support of the National Pensioners Manifesto
    which was ratified at the 2004 Pensioners
    Conference. Parts of which are being implemented
    by the present government.
  • This support is being backed by provision of
    information to members, by affiliation to the NPC
    and by actively campaigning through rallies and
    lobbying
  • The CWU are showing the same committed support
    for the Pensioners Charter.
Write a Comment
User Comments (0)
About PowerShow.com