Health unions sign pension reform deal

Initial agreements have been reached between union officials and the government over changes to some public sector pensions.

After another round of talks today, Unison is expected to put an agreement over public sector pension cuts to its executive in the new year for approval.

The details of the deal have yet to be confirmed. It is hoped the agreement could avert further strikes by public sector workers over pension reform.

The agreement concerns health workers who are members of public sector pension schemes, but it is thought another agreement concerning local government employees may have been reached, the BBC reports.

Today's agreement will only be a broad outline of a deal between ministers and unions as the government attempts to increase members contributions, end final salary pension payouts and push back retirement dates.

Earlier this month, the government offered NHS pension members a deal in which 530,000 staff earning less than £26,557 would pay no contribution increases in 2012.

Tom McPhail, head of pensions research at Hargreaves Lansdown, said the government may be forced to sacrifice some of its reforms to the state pension to reach a deal with the unions.

"Very little has been said about reform of the state pension since July," said McPhail.

"Reform of the state pension would result in public sector employees paying an additional 1.4% National Insurance (NI) because of the end of contracting out.

"Public sector employers would also face an increase of 3.4% in their NI contributions."

The announcement comes after one in six MPs signed an early day motion calling on the government to water down reforms to public sector pensions.