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Public Sector Pensions - Are they really so bad?
Comments
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Can we agree on the 'majority' ?
I would suggest the majority of staff are as "enthusiatic" as any waged/salaried individual.
There are jobs worths in many privates sector roles too. Some public staff just get smothered by the bureaucracy, that isn't necessarily their fault.
I do know teachers who go above and beyond.
I certainly know and have experienced first class service from the NHS.
I have also experienced some positive service from my council too.
Perhaps this is affected by where you live as well - I am sure that inner cites can appear/are worse."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »No company cars (apart from the select few), no perks, no credit cards racking up points for airmiles which you can spend and claim back, no travel costs (I was surprised the other day when one of my colleagues in the private sector announced he actually gets his costs of travelling to work and back home reimbursed!!). No parking charges for working reimbursed. No bonuses, ever.
TBF that is the majority of the private sector also. (but the public sector do get mileage and essential car users allowences etc, so I disagree on travel, are you talking about Subsistence)0 -
grizzly1911 wrote: »1.) It is a 50% final salary scheme - not the most generous type.
That is rather generous compared to the private sector.0 -
Can we agree on the 'majority' ?
On a personal level, no.
I agree that there is more likely to be individuals in the public sector just wasting their time, purposely.
However, thats morale. You won't find anyone wasting their time in the private sector if their christmas bonus depends on it.
I enjoy that Eddie Stobart programme, and their drivers are rewarded around christmas time with a bonus for the amount of fuel they have saved through their driving techniques. Max of about 900 quid or so. BUT, drivers then really make the effort, and unfortunately for them, it's usually traffic congestion which holds them back on the fuel efficiency. Every driver, individually, gets rewarded & recognised for their contribution.
They openly said before the bonus came into place, they wouldn't even concern themselves with fuel efficiency.
In the public sector you could do all you could to save the organisation money. YOU wouldn't be noticed, not even thanked. The cheif exec would, and he'd get the bonus and pay rise.
While its easy to point the finger at timewasters in the public sector, its also easy to point out the differences and point out the problems.0 -
basically the true cost of a final salary pension is about 20-25% of salary
in the public sector typical employee payments are round 6% so the employer is paying round 20% ish
whether that's 'affordable ' is a matter of opinion
in the past lots of public sector workers enjoyed all sorts of early retirement fiddles ; i.e. 'voluntary' redundancy with enhanced pension etc which added some major costs to the system
First para - but that is also the cost of paying a privates sector management who are more interested in their own profit than providing a real return maybe.
Accept you final comment, more so for the big wigs though.
I always see early retirement as a no win situation. As we know they are funded out of current cashflow in either situation, albeit the pension is at a lower rate and tax intake falls:o"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
That is rather generous compared to the private sector.
In today's market yes but that was common in the larger private sector outfits until recently if not more.
Not disputing we need change I just don't think it is being sold very well and I doubt the short term gains to the Government will be that big."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
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Graham_Devon wrote: »No company cars (apart from the select few), no perks, no credit cards racking up points for airmiles which you can spend and claim back, no travel costs (I was surprised the other day when one of my colleagues in the private sector announced he actually gets his costs of travelling to work and back home reimbursed!!). No parking charges for working reimbursed. No bonuses, ever.
Sounds like the vast majority of the private sector to me Graham. Even if they did all receive these perks & benefits, which they clearly don't, they would largely be taxable benefits if for any personal use. However, I'm frankly really surprised why you believe that private sector workers enjoy these benefits though? When did you see cleaners, hotel workers, accountants, bank staff, secretaries, etc. etc. with company cars & credit cards?
As for your colleague getting the costs of travel between work and home reimbursed, that would almost certainly be taxed as a benefit.There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
A rough guide is that if someone in the private sector wishes to replicate the benefits of a typical public sector pension then it would cost them around 25% of their salary. The typical public sector contribution is around 5-7%. So, it is a massive benefit for the public sector.
In the past, the public sector pensions were seen as favourable as the income levels of the public sector were low. However, during the Labour years, the salaries of the public sector boomed faster than the private sector. So, you now have many public sector jobs not only pay the same or higher than the equivalent private sector job but they have kept the favourable pensions as well.
That is why it is seen as unfair and should be changed.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
worldtraveller wrote: »As for your collegue getting the costs of travel between work and home reimbursed, that would be taxed.
It might be taxed, but it's better than nothing!0
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