Public Sector Pensions

RichandJ

caledonia84 wrote: »

Sorry my political knowledge is bad as as my financial one, not sure I understand what you mean

But you're utterly positive, without one shred of evidence, that Margaret Thatcher 'stole your pension fund' (I paraphrase) ?

There was an individual back in the 80s who stole money from a pension scheme. He fell off the back of a boat IIRC.

atush

Don't you remember Brown fawning all over the bankers?

He could hardly wait to get his hands on his share of the booty

yes, he was very fawning to the banking trade. And this was AFTER he raided all the PRIVATE Pension funds (I think they said something like 13 billion?)

Brown stole part of our pension when chancellor, Thatcher had nothing to do with it. What is worse was that during the Good Times, he spent all the money plus more that he borrowed. And sold our gold reserves at the lowest price seen for many years.

marlot

joncheadle wrote: »

Hi All,
I currently pay into a public sector pension scheme and like other people I am facing the prospect of having to pay more out with less coming in.

As someone who had his final salary scheme closed, I can assure you that even if you paid twice as much, you'd still be getting an outstanding deal.

My wife works for a local authority (not the best of the public sector schemes), and for the same forecast retirement package as me, she's paying a quarter of the contributions I pay.

dunstonh

Sorry my political knowledge is bad as as my financial one, not sure I understand what you mean

Gordon Brown built his "no more bust" period on the tax revenues of the financial sector. The Labour party borrowed amounts never seen before and gave us one of the worst deficits of the Western economies. Bankers did not break any laws. They became complacent about risk but the regulators and the Govt did nothing to control or monitor those risks. Instead, they encouraged them.

If anyone needs putting into prison, it is the public sector workers that allowed the state of affairs to occur.

Banking crisis has happened before and they will happen again. It may be fashionable to pick on bankers but lets remember that many industries have been bailed out over the years. Yet we do not demonise them. The bottom line is that the public sector is there to control, monitor and provide where the private sector cannot. There is enough mud to sling around at the public and private sector over various failings. So, there is little point you trying to point fingers at the private sector, or one sector in particular, when others carry just as much blame.

edinburgher

If this sort of financial insight and critical judgement is typical of the kind of people we have to support in the public sector, then the sooner it is drastically slimmed down the better.

Let's be fair, a general lack of knowledge about how pensions operate is endemic in both the private and public sector. Hence the recent discussions about getting a thread along the lines of 'why you can't 'cash in' your pension' stickied.

I am leaving the public sector on Thursday after 2 incredibly boring years. The pension arrangements for my new job (6% matched contribution) won't come close to the level of benefits offered by my old job, but the 13% salary increase should prove helpful

My reasons for leaving (including the fact that I have had nothing to do and hate working in the middle of nowhere) are the fact that changes to the pension scheme will have a detrimental effect on the lives of civil servants (my life!). Wage freeze + inflation + added pension payments would have meant a 10%+ drop in the spending power of my salary).

So I'm voting with my feet and am rejoining the private sector, where I can rest safe in the knowledge that my new pension will be cack from day one, as opposed to being slowly diluted!

caledonia84

dunstonh wrote: »

Gordon Brown built his "no more bust" period on the tax revenues of the financial sector. The Labour party borrowed amounts never seen before and gave us one of the worst deficits of the Western economies. Bankers did not break any laws. They became complacent about risk but the regulators and the Govt did nothing to control or monitor those risks. Instead, they encouraged them.

If anyone needs putting into prison, it is the public sector workers that allowed the state of affairs to occur.

Banking crisis has happened before and they will happen again. It may be fashionable to pick on bankers but lets remember that many industries have been bailed out over the years. Yet we do not demonise them. The bottom line is that the public sector is there to control, monitor and provide where the private sector cannot. There is enough mud to sling around at the public and private sector over various failings. So, there is little point you trying to point fingers at the private sector, or one sector in particular, when others carry just as much blame.

Thank you, your post actually helps me understand what is going on a little more. As opposed to the other posts on here that are just derogatory and of no use to anybody.

But you're utterly positive, without one shred of evidence, that Margaret Thatcher 'stole your pension fund' (I paraphrase) ?

There was an individual back in the 80s who stole money from a pension scheme. He fell off the back of a boat IIRC.

Just what I've been told from many others in my job, this thread is giving me a better understanding of the situation, I can see why my previous post about thatcher is naive.

I will take a bit more time look into this. I've allready had my eyes opened a bit by this thread although I feel I'm barely scratching the surface on whats been going on, just can't shake this feeling that I'm being railroaded and walked all over when it comes to the pension scheme I signed up for. Looks like we are all in similar boats

malony_2

@joncheadle: How old are you. How long will you be working? That can make a big different whether to go far alternative investments or not. So please give us a littler more info!

RichandJ

@caledonia, my post was flippant, I'll agree, but it does annoy me when the blame for everything from the Fall of Man onwards is blamed on "the evil Thatch".

To give an example of how much a final salary scheme costs, one of my clients has members paying between 5 & 10% contributions. The employer then puts in between 31 & 36% PLUS a monthly deficit payment of £750,000. They are not cheap and rare & getting rarer in the private sector. There are many & varied reasons for this, but perhaps it gives you some idea of the benefit you have, how much you'd have to pay if there were no taxpayer guarantee & why such threads get short shrift from those who no longer have access to them.

BTW, the bloke I referred to above was that friend of the working class, Cap'n Bob Maxwell.

atush

As opposed to the other posts on here that are just derogatory and of no use to anybody.

I suppose my posts 5 and 14 were 'derogatory'? Yours insisting WE don't know about the true cost of PS pensions was very derogatory. I was giving you my BEST advice, and that is to keep paying into your pension as you can't do better than it even with the higher contributions and longer service required.

You have to understand that your union reps aren't telling you the real world truth. They have a vested interest and left wing agenda and are using you in telling you such rubbish. If you want to know more about politics, the world and how money works then start reading something like The Economist.

jem16

caledonia84 wrote: »

just can't shake this feeling that I'm being railroaded and walked all over when it comes to the pension scheme I signed up for.

What do you feel are the changes to what you signed up for?

For example;

1. How much do you currently contribute?
2. How much do you think you will be asked to contribute when the changes are made?
3. What do you think the final salary pension is changing to?
4. How will that affect you?
5. In what way do you feel you are being walked all over?