how are all these final salary pensions going to be funded?

ninky_2

Harry_Powell wrote: »

I would be interested to see how 'Employer Contributions' from a public sector company don't equate to taxation. Most of our council tax seems to be used to feather the nest of public sector employees and pensioners. No wonder the roads are falling apart.

tbf the roads are falling apart because we've had a really bitter winter. the uk is not unique in this. the roads are so bad in germany they're looking at sponsor-a-pothole schemes to fund fixing them.

http://www.spiegel.de/international/zeitgeist/0,1518,681691,00.html

Kohoutek

Harry_Powell wrote: »

I would be interested to see how 'Employer Contributions' from a public sector company don't equate to taxation. Most of our council tax seems to be used to feather the nest of public sector employees and pensioners. No wonder the roads are falling apart.

25% of council tax typically goes towards pensions for council employees.

chucky

Kohoutek wrote: »

25% of council tax typically goes towards pensions for council employees.

really?? where did you get that from?

Sir_Humphrey

There is no point in cutting the pensions of the bulk of the lowest paid employees as that simply shifts them on to means tested benefits in retirement.

The state cannot externalise costs on to itself.

You also risk disincentivising work.

Old_Slaphead

ninky wrote: »

tbf the roads are falling apart because we've had a really bitter winter. the uk is not unique in this. the roads are so bad in germany they're looking at sponsor-a-pothole schemes to fund fixing them.

http://www.spiegel.de/international/zeitgeist/0,1518,681691,00.html

Many roads were in a pretty dire condition before the winter started. It's about time the utilities were obliged to return the roads to their original condition before they started digging them up.

Old_Slaphead

Sir_Humphrey wrote: »

There is no point in cutting the pensions of the bulk of the lowest paid employees as that simply shifts them on to means tested benefits in retirement.

No problems with the lower paid having decent pensions - it's the teachers, police, nurses, doctors, managers etc - all on average+ wages who should now be moved away from the guaranteed option. PS pensions are accruing at over £30bn pa

Kohoutek

chucky wrote: »

really?? where did you get that from?

From reading the news.

It varies depending on the performance of councils' investments, but it's been in the 20-25% range for several years.

http://www.thisismoney.co.uk/tax/council/article.html?in_article_id=421463&in_page_id=82

http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=359122

http://www.telegraph.co.uk/news/uknews/1508474/26pc-of-council-tax-goes-on-public-pensions.html

http://news.bbc.co.uk/1/hi/uk/7270387.stm

Old_Slaphead

chucky wrote: »

really?? where did you get that from?

Paragraph 5 is pertinent

http://www.telegraph.co.uk/finance/personalfinance/pensions/7367922/Council-pensions-shortfall-tops-53bn.html

Current levels of funding do not take into the account huge shortfalls in LA Pension Schemes.

chucky

Kohoutek wrote: »

From reading the news.

It varies depending on the performance of councils' investments, but it's been in the 20-25% range for several years.

http://www.thisismoney.co.uk/tax/council/article.html?in_article_id=421463&in_page_id=82

http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=359122

http://www.telegraph.co.uk/news/uknews/1508474/26pc-of-council-tax-goes-on-public-pensions.html

http://news.bbc.co.uk/1/hi/uk/7270387.stm

that's not good - no wonder Sir Humpy is on the defensive

Sir_Humphrey

Old_Slaphead wrote: »

No problems with the lower paid having decent pensions - it's the teachers, police, nurses, doctors, managers etc - all on average+ wages who should now be moved away from the guaranteed option. PS pensions are accruing at over £30bn pa

The pension is part of the complete pay package. Cut that, and wages will soon rise to compensate. It is called market forces.

Why have all the stress and aggro that goes with higher grades if the renumeration does not match? For example, I do not really see being a Senior Civil Servant as being financially worthwhile compared to the highest grade of Junior Civil Servant - the pay differential is not worth it unless you want to aim right for the top as there is more hassle, longer hours and less security at the lower SCS levels. I'd also be doing as useful a public service at the lower grade. I know people who have progressed rapidly through the junior ranks who have a similar opinion.

This would be even more the case if I had a career-average pension.