A fair few lucky people are getting decent pay rises according to the three year pay offer which is being imposed later this month, but consider people who are on the max of their scale. The figures below show that they are receiving well short of inflation over these three years.
An EO on max currently receives £23510 per annum. At the end of the three year deal they will be on £24230. Yet if the rise is inflation proofed they would be on £26445. That is a loss of £2215pa or £185 per month
Similarly an AO on max will be on £1626 per annum less in 2009 than they would be if the rise was inflation proofed. That equates to £135 a month. It's hardly fair is it?
Of course this also has a massive effect on your pension too. If we take an EO currently on max who will retire in 2009 with 40 years service, their pension would be £13223 per annum with a lump sum of £39669 if the rise was inflation proofed. However this offer promises them £12115 pa and £36345 lump sum.
That's a massive loss of £1108 per year and £3324 lump sum. If that member of staff lives to just 80, their pension loss over those twenty years would be £22160 as a minimum.
Does anybody really believe this pay offer is the best that can be done for our long serving respected staff? They are basically going to be forced to have enormously reduced standards of living for the rest of their lives.
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