Crunch time for council workers’ golden pensions

donaldtramp

Brilliant and not before time:T
Even Labour has realised that the bloated public sector's pension provision is unfair, unsustainable and ridiculously generous.

Go on strike if you want. The public is most definately NOT behind you.

Bring it on!!!

http://www.timesonline.co.uk/tol/money/pensions/article6810021.ece

Millions of public sector workers will have their pensions slashed under plans to deal with a massive shortfall in the value of local government pension funds, The Times has learnt.
The move by ministers to strip council workers of their “gold-standard” final-salary pensions is likely to trigger widespread industrial action.
It comes as the gap between public and private sector pensions widens. Yesterday Royal Bank of Scotland became the latest company to reduce final-salary benefits to existing staff.
John Denham, the Communities Secretary, is drawing up a series of proposals to overhaul the pensions of two million council workers, covering short, medium and longer terms.
Senior staff could lose out on tens of thousands of pounds a year if the changes are applied across the board.
A senior local government official who has been briefed on some of the proposals said that doctors, nurses and teachers were likely to face similar changes as the public sector burden becomes unaffordable.
Local government pensions, which are ultimately guaranteed by the taxpayer, are funded by investments, but most others are paid for out of the public purse.
Sources say that the proposals include moving to a “career-average scheme”, a system already adopted for new recruits to the Civil Service......

donaldtramp

Here is a graphic representation of the liabilities we face due to the public sector...

http://extras.timesonline.co.uk/pdfs/pensionpot.pdf

mathsmaster

That graph shows pensions based on 1/60th. I started teaching in 1997 and it's always been 1/80th but I've no idea when it changed. The pension is obviously generous but we don't get them completely free. I've been paying 10% of my salary into the pension since I started at the age of 22 - 6.7% for the TPS and the rest as AVC. If everyone did this, both public and private sector, I don't think there would be so much talk of people working until they are 70 and beyond.
Also, there is an element of swings and roundabouts. My brother's good at his job and gets a 20% bonus each year. I'm good at my job and get a X-mas card from the Headmaster. While a solid pension scheme isn't the only reason people come into the profession, it does contribute. To say there is a shortage of maths teachers in the South East is an understatement and there has been for the last decade. Stopping the benefits is hardly likely to help the situation. I've seen more than one article about classes of 90 kids with the teacher assisted by several support assistants. Wait until your own kids / relatives are in a class like this and then see how much teacher bashing you want to do.

drc

Great news for sanity!

Since contribution to council workers pensions adds about 1/3rd to council tax bills, I wonder if this means our council tax will start to drop? I won't hold my breath :rolleyes:.

donaldtramp

The pension is obviously generous but we don't get them completely free. I've been paying 10% of my salary into the pension since I started at the age of 22 - 6.7% for the TPS and the rest as AVC. If everyone did this, both public and private sector, I don't think there would be so much talk of people working until they are 70 and beyond.

The pension is way too generous. As a maths teacher I would hope you understand the liabilities to the country, the value of the taxpayer guarantee and the fact that a great deal of people (including myself) DO contribute to pensions but receive NOWHERE near the benefits the public sector gets.

I've heard all this nonsense about bonuses etc in the private sector.
Is it correct that poorly paid private sector staff(many with no pension) are contributing and paying into YOUR pension through their taxes such as Council tax?

I am looking forward to a decent retirement. but it is SELF funded and I'm sick of paying other peoples pensions through my taxes.

drc

Lets also hope that those useless public servants known as MP's are the first to have their pensions slashed although in this crazy world the opposite will probably happen.

lemonjelly

Why do I get the impression this will just turn into another abusive witch hunt thread like kriss_boys thread?

1echidna

lemonjelly wrote: »

Why do I get the impression this will just turn into another abusive witch hunt thread like kriss_boys thread?

Oh yes while we are at it lets have ago at bankers, politicians, the sick and unemployed and of course immigrants.

Old_Slaphead

lemonjelly wrote: »

Why do I get the impression this will just turn into another abusive witch hunt thread like kriss_boys thread?

Because it's such a highly emotive issue.

Given what Gordon Brown has done to destroy private pension provision by using it as a milsch cow for his profligate spending it's hardly fair that public sectors pensions (which are primarily funded by those who's schemes he's destroyed) should be allowed to get off scot-free.

ps FWIW some of the responses to kriss_boys postings were. in my opinion, ludicrously OTT and inappropriate for a 'discussion' thread that should rely on reasoned argument and not simple 'slagging off'

Andy_L

donaldtramp wrote: »

Is it correct that poorly paid private sector staff(many with no pension) are contributing and paying into YOUR pension through their taxes such as Council tax?

I am looking forward to a decent retirement. but it is SELF funded and I'm sick of paying other peoples pensions through my taxes.

Whatever from of pension provision PS workes are given "poorly paid private sector staff" will still be paying for other peoples pensions from their taxes.

lemonjelly

Old_Slaphead wrote: »

Because it's such a highly emotive issue.

Given what Gordon Brown has done to destroy private pension provision by using it as a milsch cow for his profligate spending it's hardly fair that public sectors pensions (which are primarily funded by those who's schemes he's destroyed) should be allowed to get off scot-free.

ps FWIW some of the responses to kriss_boys postings were. in my opinion, ludicrously OTT and inappropriate for a 'discussion' thread that should rely on reasoned argument and not simple 'slagging off'

Post of the day:T