Civil Service Pension Scheme Collapse

Andy_L

JoeCrystal wrote: »

If I am reading this right, the contributions from the employers and employees only cover a third of the cost (£4 billion) with the HM Treasury making up the shortfall (£10 billion)? I think I need to find a new job in the Civil Service or the Local Government, that is my best shot at a comfortable retirement! :rotfl:

That is the nature of an unfunded scheme in an organisation that has been reducing in size over the years - there are far more pensioners than workers. Conversely the NHS scheme, which has been increasing its staff numbers over a similar time period, is in surplus comparing contributions with pensions paid out. Over the coming years, assuming a period of stability in numbers, they will balance out as the current cohort of pensioners die off.

Loads of CS jobs here
https://www.civilservicejobs.service.gov.uk/csr/index.cgi?SID=cGFnZWNsYXNzPUpvYnMma2V5PWZhaXImcGFnZWFjdGlvbj1zZWxlY3RieXF1aWNr

Seabee42

The pensions deficit for these unfunded schemes is three times the countries national debt. It would be wrong to say there are no long term funding issues!

JoeCrystal

Andy_L wrote: »

Loads of CS jobs here
https://www.civilservicejobs.service.gov.uk/csr/index.cgi?SID=cGFnZWNsYXNzPUpvYnMma2V5PWZhaXImcGFnZWFjdGlvbj1zZWxlY3RieXF1aWNr

I am actually planning to find a job with such pension schemes in the future once I paid my mortgage off. Most likely with the Local government as Civil Servant jobs are quite bare around here.

hugheskevi

The pensions deficit for these unfunded schemes is three times the countries national debt. It would be wrong to say there are no long term funding issues!

If you look at Figure 9 on this linked page, the really big increase in spending in the future will come from health and State Pensions.

Expenditure on public service pensions as a % of GDP will fall.

The nature of a pay-as-you-go system is that when viewed as a capitalised figure, a long-term stream of very manageable annual expenditure will appear to be a large number.

GunJack

hugheskevi wrote: »

If you look at The nature of a pay-as-you-go system is that when viewed as a capitalised figure, a long-term stream of very manageable annual expenditure will appear to be a large number.

Exactly.....to use an analogy think of buying a new car...

Either £20k purchase price up front handed to the dealer (unaffordable to most), or,

Monthly payments over 20 yrs @ £1.2k p.a. or £100 a month (easily affordable for most).....

AnotherJoe

JoeCrystal wrote: »

I am actually planning to find a job with such pension schemes in the future once I paid my mortgage off. Most likely with the Local government as Civil Servant jobs are quite bare around here.

ooh err missus :eek:

Seabee42

hugheskevi wrote: »

If you look at Figure 9 on this linked page, the really big increase in spending in the future will come from health and State Pensions.

Expenditure on public service pensions as a % of GDP will fall.

The nature of a pay-as-you-go system is that when viewed as a capitalised figure, a long-term stream of very manageable annual expenditure will appear to be a large number.

Just under 40% of the police budget goes on pensions. These are not small sums.

Freeman24reverseFpenny

Sounds like a weird, badly imagined, conspiracy theory. Needless to say it's utter made up tripe.

Civil Service Pensions are not funded as such, but they are underwritten by the Treasury, and as such, will not "go bust".

Fear not.

Thrugelmir

Freeman24reverseFpenny wrote: »

Civil Service Pensions are not funded as such, but they are underwritten by the Treasury, and as such, will not "go bust".

Underwritten in what way?