Public Sector Pensions

harryhound

So you just inflate the problem away.
Just like Argentina and the 1970's (and now).
Result penny less public sector workers selling their possessions and hunting in waste bins.
Just check out the former USSR and its empire.

Arcaine

harryhound wrote: »

The currency has already been devalued by 25% - just ask a Polish plumber.

There are two sorts of people on this thread:

Public sector workers, who seemed to have a little England, attitude where our off shore island is going to find another money tree growing somewhere.

Private sector workers, who are beginning to realise that things are very tough in a competitive world (where the majority work 6 day weeks for a few dollars a day not an hour).

I would help if each poster could let us know if they are private or public sector and the number of days paid holiday they get.

I'm retired private sector on a pension of less than 1K a month and at retirement I used to get 5 weeks holiday - but my company pension fund is in deficit.

Private and still a few decades until I retire - 23 days a year, health care (everyone in the company does). No sick pay only SSP (everyone in the company). Bonus Scheme based on performance targets (everyone in the company). We have no company cars, rather we pay a car allowance through their salary for all people who use their car for company business.

Old_Slaphead

abaxas wrote: »

Of course.

You got tax relief on it!

And you pay income tax on it when it come out in the form of an annuity - I was more interested in your idea of an extra tax called " pension protection tax"

Old_Slaphead

lvader wrote: »

If an employer makes a contract to pay a certain level of pension then it's up to them to make sure the pension fund is adequately funded, I'm not sure why the government should be any different.

What happens when the employer goes out of business because (amongst other things) his pension costs turns out to be far higher than extected. Public sector pensions are only affordable 'cos the Gov't has a bottomless moneypit called the taxpayer.

Arcaine

Old_Slaphead wrote: »

What happens when the employer goes out of business because (amongst other things) his pension costs turns out to be far higher than extected. Public sector pensions are only affordable 'cos the Gov't has a bottomless moneypit called the taxpayer.

Thats why the Pension Protection Fund exists. A company that has a DB scheme (active or innactive) must pay an amount each year, determined by the PPF. This is based on risk and the deficit amount, profit etc. If the company fails then they pick up the tab for the scheme (if they are accepted). I have no idea if the PPF scheme is fully funded. I do have a good grumble about the amount of money each year when I sign the rather large cheque. I do think that just because a company fails workers should not lose their pension, however I know of more than one instance where more unethical people have put a profitable company into administration just to dump the pension deficit into the PPF.

nickmason

StevieJ wrote:

Obviously some dishonourable people on here who believe that employment contracts should be broken, where next the £50k promise on bank accounts or defaulting on our govt debt?

Generali wrote: »

My opinion is that they shouldn't be broken, clearly that would be wrong. I believe however that they will be broken as a lie has been sold to the British people, that it's possible to pay for pension promises as those promises exist as present.

I think, between the two of you, you have summed it up perfectly.
(I voted Yes, by the way - and am 'guilty' of being public sector-ish, in that, while previously private sector, I now work for the voluntary sector and receive some small allowance as a councillor. My 25 days holiday are normally spent doing council related work, so very low!)

PrivatisetheNHSnow

we can't afford it. one man's broken promise is another man's tax increase. too bad for those who believed the promise.

defined benefit=if something sounds too good to be true, it is.

vivatifosi

The government should absolutely make good on the vast proportion of accrued pension promises. The long-term effect of not doing so could be massive: nobody would trust pensions, the impact on saving for the future could mean that even fewer save and the means-tested element of the general pension would go through the roof.

Further it would be absolutely unfair for the PPF to exist for the private sector but no equivalent safety net to be extended to the public sector, although a 90% ceiling up to the same value as the PPF would not be unreasonable. If public sector pensions genuinely can't be afforded, then the same ceilings should exist and a switch to DC for new members should start PDQ.

marklv

This is a stupid thread, created by stuoipd people for stupid people and used by stupid people.

brit1234

As a public sector key worker I hope they make the short fall. I pay 11% pensions contributions each month, unlike the private sector it doesn't go into a money fund but straight into genral gov genral funds from tax.

If people want pension reform it should start with new applicants, however this was only done 3 years ago in my job.