Fund has bn. in deficit for years. No review since '25. Bad history : originally they were promised non-contriby. pensions. L.a.'s will agree to 6% - they give that to other employees. Teachers are opposed, as always. They claim tht. it isn't a fund carried in Budget : & we are still drawing in more than we pay out. No other scheme where rate is varied during service. Burnham Cttee. is now reportg. Shall have to accept its award – almost at once. Cd. be said this (with salary increase) is good time to announce increased pension contn. I agree, if we are going to do it at all. Saving = £2.3 M. Agree we can't p'pone for ever getting into good actuarial state. But will be v. controversial. And awkward fr. angle of recruitg teachers. Shall be addg. minor changes they like, but they will be ignored.
Discussed at length in H.A. Cttee. Concluded tht. for reasons of economy alone (not actuarial propriety) We shd. do it – & announce at same time as increase of salary.
Endorse F.H.'s view. Controversial : unpopular : but saves £2½ M.Must do it now, if at all.
Posn. of fund – £102 M. By Mar. '54 deficiency will have grown to £190 M.Burnham award will add £8 M. to Ed. Estimates, wh. continue to rise. Tax relief will reduce burden on individual, wh. isn't v. heavy.
Got to be done.
Approved : as in memo.
Taken from C.C. 80(53) - Meeting held on 18 December 1953.