As part of budget 2004, I announced certain changes decided on by Government to pension arrangements in the public service. These changes largely represent the implementation of recommendations of the Commission on Public Service Pensions. These recommendations were themselves the subject of a further report by a joint management-union working group which reported in October 2003. The report of the working group did not contain agreed recommendations on many issues, including issues relating to teachers' pensions. As mentioned earlier, the budget changes reflect the pensions commission recommendations. The commission considered teachers' entitlements under the PCW in formulating its recommendations.
Under the PCW, second level teachers achieved equalisation with the terms enjoyed historically by primary teachers in that pension benefits became payable at age 55 provided that a teacher had 35 years' service. The changes which I announced recently in the budget regarding retirement age for teachers and other public servants affect new entrants only and do not affect the pension arrangements of existing teachers.