Unions representing workers in the nuclear sector have threatened industrial action over a plan to cut the final salary pension benefits of their members.
The threat came after the Nuclear Decommissioning Authority launched a consultation on Monday (9 January) in which it proposed switching pension benefits from a percentage of final salary to one of "career average revalued earnings", or Care.
The NDA also proposed linking annual pension increases to the consumer price index, instead of the higher retail price index it uses now.
As a possible alternative to these measures, it also proposed introducing a pensionable pay cap.
These changes were recommended by Lord Hutton's Independent Public Service Pensions Commission in 2011 and the deadline for introducing them is 2018.
But four unions - Unite, Aslef, the GMB and Prospect - said these rule did not apply to the two pension schemes in question, because they are "not public sector pension schemes and were not within the scope of public sector pension reform".
The joint statement went on: "They [the schemes] were not included in the terms of reference of the Hutton review of public sector pensions and they were not covered by the Public Service Pensions Act 2013."
Unite, one of the four unions representing nuclear sector workers, called the proposal a "£660m Treasury ‘raid’ on nuclear workers’ pensions", and called on energy minister Jesse Norman to "step up to the plate" and meet the unions.
The union described the NDA as "a stalking horse" for the government that was attempting to save money "at the expense of workers’ retirement incomes", even though the pension scheme was not in deficit.
The union said industrial action "could be on the cards" if Mr Norman did not meet the unions.
Unite national officer for energy Kevin Coyne said there was a "high level of anger" among the shop stewards from the respective unions, which alongside Unite are Aslef, the GMB and Prospect.
“They are dismayed that the retirement incomes of 16,000 nuclear industry workers are under serious threat because of the financial machinations of the Treasury," Mr Coyne said.
“This threat is made worse by the fact that the pension scheme is not in deficit – this is like rubbing salt into the wounds."
The NDA argued that the pension schemes in question did come under the Hutton review's recommendations because they received significant government funding.
In a letter to staff, the NDA stated: "The NDA estate receives more than £3bn of funding from the public purse each year and, as previously communicated, final salary pension schemes across the NDA estate are, therefore, within the scope of public sector pension reform."
The consultation period ends on 8 March.
james.fernyhough@ft.com
