Trade unions representing the government workforce have pledged to continue industrial ballot action set for 30 November, despite being urged to accept enhanced public service pensions proposals unveiled by Danny Alexander today.

In a parliamentary statement issued after Prime Minister's questions, the chief secretary to the Treasury announced an 8% increase on cost ceilings compared with the previous offer based on Lord Hutton's recommendations. This would fix future schemes on 1/60th accrual rates.

Mr Alexander also committed the Government to protecting all government employees set to retire within the next 10 years.  He said this group would not see any change in their retirement date or any decrease in the amount of pension received.  HM Treasury sources confirmed other workers ‘very close to being ten years from retirement age' might also benefit from additional protections.

Under the revised offer, a 35-year old local government administrator with 13 years service earning £20,000 a year would retire at 68 with a pension worth £12,000, as against £9,800 upon retirement at 65 previously.
 
However, council high-fliers would appear to be worse off according to the Treasury's modelling.   A future town hall chief executive, now aged 38 and paid £30,000 a year who retired at 68 on a £130,000 salary, would see their annual pension shrink from £66,400 to only £48,8000.

Commenting on today's announcement, TUC general secretary Brendan Barber said: ‘The proposals, and their detailed implications for the pensions offer within each scheme, will now need to be considered in detail within the sector specific negotiations, alongside all the other issues including proposed contribution increases, increases in the pension age, and the impact of the indexation change from RPI to CPI on which the government's position remains unchanged.'

‘But unless and until further real progress is made and acceptable offers are made within those negotiations, unions remain firmly committed to continuing their preparations for the planned day of action on November 30.'

GMB national secretary for public services, Brian Strutton, warned it was unclear, and would take some time for unions to calculate how the changes would ‘translate into actual proposals for the different pension schemes.'

Mr Strutton continued 'We will not be able to resolve these issues quickly or easily so our industrial action ballot continues, as will negotiations.'