Pension And Industrial Action

• How does the strike action affect my pension?

None of us take strike action lightly, but many questions have been asked as to exactly how a two day strike will affect final pensions when they come to payment. We hope the answers below will put members’ minds at rest.

First, Unison does not encourage any member to go on strike in their last year in which they are due to retire. Final Pensionable Pay is calculated on your last 365 days of Pensionable service, and would be reduced by taking any strike action.

For members not in their final year, the loss of two days Pensionable service will have little effect on overall final benefits. For example, a member whose Pensionable Pay is £10,000 pa, :-

(10,000 x 1/60th x 2 days membership of the pension scheme) / 365 days

Would only lose £0.68p of pension a day after tax - not even the price of an average daily newspaper. You will still have continuous service with Local Government; and therefore all your statutory employment rights will remain the same.

If you are concerned at losing 2 days Pensionable Service, you can buy back the two days. To do this you must elect in writing to your employer your wish to buy your strike days back. This will be payable at the rate of 16% of your Pensionable Pay and your strike days will then count towards your final benefits. There is a form on the Essex County Council intranet which can be downloaded if you decide to do this.

Related pages: Hardship Fund

Author: Andrew Coburn