Why do we pay council workers Pension ???

kidmugsy

johndough wrote: »

I pay council tax, and have done for over 40 years ....


Have I been stupidly ripped off?

You bet! You were paying Council Tax before it was invented. That's what I call a rip-off.

MPD

johndough wrote: »

Hi

I just realised how stupid I am.

I pay council tax, and have done for over 40 years, so when I wasn't in the LGPS I was subsidising all those others.

When I was, I was paying twice, via my contributions and my council tax.

Have I been stupidly ripped off?

If you were eligible for the LGPS but had opted out then I can confirm your stupidity.

The way to look at it as a member is that your council tax is being plowed back into your pension fund. If things work out well you'll get it all back in due course.

redpete

collectors wrote: »

Its certainly wrong.

Any opinion in your post is certainly wrong.

BobQ

collectors wrote: »

Hi, can someone say why do we pay council workers pension. I be-leave I'm right in saying that around around 1/3 "& rising"of what we pay in council tax goes to council staff like office workers, dustbin men & women & so on. I have no problem with the workers who signed up for this as i am sure i would have done the same, but why are our rates being used for this. I don't get a pension subsidized like this, why should these workers get it with a massive loss to our local areas help & maintenance. These workers get a state pension on top of this as well. Its certainly wrong.

We pay council workers pension because they are employed on the basis that they are eligible for the LGPS.

You cannot spell 'believe' but are confident that you understand the cost of LG pensions? The LG employees pay about a third of the costs of their pension from their salaries, the employer pays about two thirds.

You may not realise it but not all "council jobs" are "council employees". Many refuse collectors are not in the LGPS.

The reason why LGPS employees get a good pension is partly due to the approach of employers in the past, They chose to offer a good pension and a low salary. The LGPS is no longer as good as it once was (it is now based on average salary not final salary) but is still a good scheme. But the average pension is only £5K a year.

If the public want to stop the LGPS it can do so, but will have to accept that those staff will (in the long term) go elsewhere. For people who see LG staff as "pen pushers" this will not be a problem, but it will not be that easy to recruit surveyors, social workers and Environmental Health Officers for the current pay who have the right qualifications and are willing to accept the level of responsibility involved.

Teaandscones

Because the LGPS has a majority of low paid and female members, if it was abolished completely then about half the pension payments made would result in increased benefit costs or lost taxes to the treasury.

As more than half its costs are made up of employee contributions and investment returns, don't think that abolishing the LGPS will result in a saving in overall taxes; it won't.

Number75

I pay council tax.
I should get compensation.
Surely it's the next mis-selling scandal?!

System

kidmugsy wrote: »

You bet! You were paying Council Tax before it was invented. That's what I call a rip-off.

Yeah I know.

System

MPD wrote: »

If you were eligible for the LGPS but had opted out then I can confirm your stupidity.

The way to look at it as a member is that your council tax is being plowed back into your pension fund. If things work out well you'll get it all back in due course.

Thanks;

I think I already have.

chiefie

To ensure you make the right decisions about requesting money back I suggest you speak to your local councillor who you elected (or not) if you did vote. They will have access to the medium term financial plan and yearly accounts - in fact you have if you go on the council website. From that you can work out the payroll costs - of this pension contributions will be between 10-20%, not unusual for a db Scheme. Then you lobby your councillors for change. Good luck with a convincing argument to renage on an employment contract but please share your progress it will be interesting.

Sambella

Every company you buy goods or services from uses the profits made to pay salaries,bonuses and employer pension contributions including those of fat cat CEO's ..... and they all get state pensions too!