Is it fair that Govt employees get DB and private sector employees DC (in general)

[Deleted User]

Thrugelmir said:

Deleted_User said:

2. The taxpayer contributes 31% to police pensions (if we take one example). That’s a lot. 

That's somewhat misleading. My old quasi public sector employer contributed on the face of it 26.2% of gross salary. When in reality 7% of this contribution was effectively a levy to cover existing liabilities. 

Fair enough, but that’s what it costs the taxpayer, plus liability for the risk. 

There is a fundamental conflict with Humphrey deciding pension arrangements which will impact his own remuneration while someone else is paying. 

When business does this kind of thing, they are screwing the shareholders and the liability hurts share prices big time. My old company got sold for next to nothing because of pension liabilities. There are consequences for mismanagement. When the government does it everyone is happy because it’s “nobody’s money”. 

GunJack

princeofpounds said:

GunJack said:

princeofpounds said:

I was merely refuting the baseless point that gets made countless times that 'the public sector gets paid less so higher pension entitlements are ok'.

So how come, when I came out of the CS and into private sector I got a 20% pay rise and a DB pension scheme? For less responsibility..and that was not unusual. It makes those studies seem to be a bit, well, wrong....

You expect anyone to take your personal anecdote seriously?

D'you really want me to dig out old payslips/P60s to prove it to you?? Believe me, Civil Service (as opposed to some NHS/Local Govt) really don't get paid that much for what they do....as the majority of CS will attest to. You only have to look at the example earlier in the thread of the guy's department trying to recruit a sw engineer - CS can never match private sector salaries for engineering (pretty much any discipline), accountancy, etc., etc., 

nigelbb

The state is almost a monopoly employer in certain sectors like health. Would it be fair of the state to take advantage of that monopoly power by giving crappy pensions to nurses, doctors, radiographers, physiotherapists etc etc?

strawb_shortcake

I work in the civil  service my opposite number in industry has far less responsibility and accountability than I do and earns around £7k pa more than I do plus bonuses on top. They get the same amount as leave as I do and a very similar pension. 
With the CS, there is always going to be a ceiling to what you earn, in industry this is less so albeit you need to be analysing roles with clear career progression and not low skilled jobs with no development opportunities.