Striking and Retirement

Question: What is the effect of going on strike on 24th April on my pension if I am about to retire?

Answer: The Union’s advice to members is as follows:

For retirements on or before 31.12.2008 there are three options to determine the pensionable salary and your pension benefits will be calculated on the best of the three options.  For retirements after 31.12.2008 only the second and third options will apply and your pension benefits will be calculated on the better of those options.

The three options are:

  1. -     your best 365 consecutive days average salary in the last three years of pensionable employment
  2. -     your salary received in the last 365 consecutive days of reckonable service
  3. -     the average of the best three consecutive years in the last ten years re-valued in line with the Retail Prices Index.

If, therefore you are planning to retire in the 12 months from April 2008, you should be aware that taking strike action could have an adverse effect on your pension over and above the loss of one day’s reckonable service.  In particular, it would be necessary to go back over a longer period to get 365 consecutive days or 1095 consecutive days of reckonable service and this could reduce your pension.

For this reason the Union is not calling on members in their last year of service to take strike action and advises members in this category not to do so if it appears that the action would have an adverse effect on their pensions.  If you do decide to strike you will receive the same support as all other members taking industrial action.