By Shane Croucher: Subscribe to Shane's RSS feed
November 29, 2011 5:54 AM EST
Two million public sector workers are set to walk out on November 30, in some of the biggest strikes Britain has ever seen.
On this "Day of Action," as the Trade Union Congress, or TUC, calls it, these workers are bringing a pensions row with the government to its peak. The government is seeking to reform public sector pensions and the unions are unhappy with the changes being proposed.
There have been on-going negotiations between unions and the Treasury, in a bid to reach agreement and avert any strikes. No deal has been made and, despite talks continuing, the unions have decided it is time to take industrial action.
As Britain prepares itself for November 30 and the fallout, including massive delays at airports and swathes of school closures, IBTimes UK goes to the heart of the dispute.
What do public sector pensions look like, and what exactly does the government want to do to them?
Follow us
How Public Sector Pensions Currently Look
For each section of the public sector, the pension scheme is slightly different.
In local government, the accrual rate -- essentially interest -- is 1/60 annually, and the scheme is linked with an employee's final salary. Retirement age is 65 and average employee contribution is 6.3 percent, against an average employer -- the taxpayer -- contribution of 13.3 percent.
For the NHS, retirement is also at 65 with an accrual rate of 1/60, linked to final salary.
GPs have their own pension scheme within the NHS, based on average salary - though the accrual rate is 1.87 per cent annually.
Employers pay 14 percent contributions, while employee contributions vary from 5 percent -- 8.5 percent, based on earnings.
Teachers have a final salary scheme with pensions based on two-thirds of their final salary, retirement age of 65, and an accrual rate of 1/60.
Employees pay 6.4 percent in, while employers stump-up 14.1 percent.
Civil servants are offered two different schemes. One's a career average pension with a retirement age of 65 (Nuvos), the other's a final salary scheme with retirement at 60 (Premium).
The Most Dangerous US States to Drive In 2012 [SLIDESHOW]
After Greece Exits The Euro, What's Next? An Illustrated Guide To 5 Possible Scenarios
Kate Upton Is Back With Sexy Beach Bunny Swimwear Video
A Dead Whale, A School Cafeteria And A Chinese Mystery
Spain's Bankia Suspends Shares On Bailout RumorsWe value your privacy. Your email address will not be shared.
