« Clegg on announcement of changes to the health bill | Main | Vince Cable says the Government wants to reach a deal with the unions over public sector pensions through "constructive negotiation" »

June 17, 2011

Comments

Toxic Storm Clouds

All Public sector Pensions should be changed to Money Purchase Pensions from now on IMO.

Given the change in life expectancy and other demographic shifts this change is not just essential but will ensure sustainability and fairness.

Those who complain about the shift must accept that Labour messed up the system and it is the only equitable way to solve the problem Labour created. Most private sector organisations have money purchase schemes so why should public sector organisations have something the rest of the country don't have? Public sector employee's are better paid than there private sector counterparts and do have better holiday, sickness regiemes and general support.

The number of people who i have come across who say we need a Maggie thatcher approach on the public sector is quite impressive. I think by this they mean sorting it out and restructuring it.

On a final note, MPs should have Money Purchase schemes as well - Its called leading by example. What I suggest is legislation is brought in this parliament to ensure that MPs elected after the next election have money purchase schems instead of final salary.

Rebel

Perhaps we could stop bailing out the Euro instead??

hector

As a public sector worker I will hold my hands up and say I don't support these reforms for selfish reasons. Then again most people want reforms that affect other people and not themselves, so I do not feel guilty. I hope both sides can negotiate and find common ground. However mps cannot try and force through pension reform, while keeping their own current terms and conditions.

TomTom

The State takes too much money. It started using Inflation after 1945 to rob Savers to pay off war debts and impoverished pension plans. Then more and more were brought into the Income Tax net and National Insurance - at low levels of income. It used Inflation again and again until Heath in 1970 became the first PM to get Interest Rates in double-digits as inflation took off. Then they used Privatisation to get money by selling off public-assets cheaply but retaining the costs (pension deficits BT, British Coal, British Steel etc) and nuclear -decommissioning costs for the taxpayer; then it was Stealth Taxes; then Green Taxes; now it is Pension Fund raids - first Lawson forcing Pension Fund holidays to get more tax from employers; then Brown tax-raiding pension funds; now an attempt to increase Pension Contributions during a 3-Year Pay FREEZE and cut pension benefits.

The State is truly bankrupt but steals whatever it can get from households because it cannot stop spending

dorsetdumpling

Fact: we have to spend on certain items in our domestic budget (even though we know we have to cutback), the government cannot simply stop spending because "it is truly bankrupt". Fact: the unions have to come to the "eyes wide open" position of realising that the pensions enhanced by the last government during fat years cannot be sustained during lean years. Fact: people are living longer and therefore the pensionable age has to be raised and personal contributions increased. Fact: we are where we are because of the profligacy of the Labour government (no matter how much they try to wriggle and jiggle out of it). Fact: there is no money tree to shake so where do the unions propose the money will come from to fund the status quo they wish to retain? Fact: To fund it, money will need to be taken from another sector.....where do they propose it comes from? The private sector have taken a hit.....now the public sector needs to face reality.

TomTom

where do the unions propose the money will come from to fund the status quo they wish to retain

Yet still they see a Government able to spend £12 billion on foreign aid and take a 3 Year Pay Freeze and higher Contributions to a Pension based on 80ths - so you would need to work 40 years to get 50% final salary. Meanwhile at HMRC and Local Government and no doubt Quangoes the Rule of 34 applies. Work 34 years plus starting age and retire on Pension at say 52 on a NON-Contributory Scheme.

Meanwhile Mervyn King and his band at the B o E have their fund in Indexed-Linked Investments and he has increased his pension to £200,000 annually.

So by all means tell the Unions about belt-tightening and rality, but just who is going to tell Whitehall and Theadneedle Street ?

bert

As an employee in the LGPS I agree with the changes - BUT - as long as ALL public sector pensions head this way (with lower retirement age for military / police as now).

TomTom - in the LGPS the rule of 85 has gone

The comments to this entry are closed.

Homepage

Options

Most Updated

Other Pages

Tracker

  • Extreme Tracking