Can't trust government with pensions

MEM62

EdSwippet said:

And how do you make a Government avoid "short-termism" as you put it when their time in office is limited to five years?  

Take pension policy out of the hands of Government and give it to a separate and permanent commission. Pensions are multi-decade projects that are too important to be left to politicians.

Actually, a great idea.  But then how about including infrastructure, transport and all those other projects that need a forward view of 20, 30 or more years.   

Thrugelmir

michaels said:

Thrugelmir said:

Barry_Bear said:

A few comments have been keen to dismiss the reports of changes as just speculation and nothing more. Although everything can be called speculation, the fact is the government has a track record of moving the goal posts before.

Typical of the short-termism that plagues our system of government actions that erode long-term trust are not going to encourage people to save now to plan for their futures.

There's a recent generation (myself included) that have benefited sizably from favourable Central Bank policies in the past decade. Which has widened the inequitable distribution of wealth. I've no complaints about contributing more back into the system. Will be my son that pays the bill otherwise. 

But he will pay it most likely from a bigger inheritance if it is not taken from you in higher taxes first - and any of the extra that you do manage to spend will pay VAT, income tax on wages, corporation tax on company profits etc so will also get recycled back to the govt.

I was referring to the higher general levels of taxation in the immediate years ahead that he will face. Corporation tax rises are likely to dampen returns on equities for example. 

Thrugelmir

EdSwippet said:

NedS said:

Playing devil's advocate, if I were the non-elected appointed Chief Commissioner of such a Quango Commission, on a six figure salary, what controls would be in place to ensure I were acting independently and not making decisions influenced by my own personal interests and circumstances? After all, I would naturally want to save a large portion of my six figure salary towards my retirement in a tax efficient manner.

Something similar to the existing controls that prevent MPs from making rules that result in them getting better pension terms than those available to the private sector?

Oh, hang on ...

Life span as an MP can be relatively short though. For many not a career. 

zagfles

Thrugelmir said:

EdSwippet said:

NedS said:

Playing devil's advocate, if I were the non-elected appointed Chief Commissioner of such a Quango Commission, on a six figure salary, what controls would be in place to ensure I were acting independently and not making decisions influenced by my own personal interests and circumstances? After all, I would naturally want to save a large portion of my six figure salary towards my retirement in a tax efficient manner.

Something similar to the existing controls that prevent MPs from making rules that result in them getting better pension terms than those available to the private sector?

Oh, hang on ...

Life span as an MP can be relatively short though. For many not a career. 

Same applies to a lot of jobs. Although MPs and especially ministers are vastly underpaid for their level of responsibility - a CEO in charge of a company with a mere billion turnover would normally be paid much more than the PM.

kidmugsy

EdSwippet said:

Take pension policy out of the hands of Government and give it to a separate and permanent commission.

Today the High Commissioner for Pensions, Lord Toniblair, announced a ring-fenced pension scheme for barristers.   And their children.  And grandchildren.

Malthusian

kidmugsy said:

EdSwippet said:

Take pension policy out of the hands of Government and give it to a separate and permanent commission.

Today the High Commissioner for Pensions, Lord Toniblair, announced a ring-fenced pension scheme for barristers.   And their children.  And grandchildren.

I don't see the problem. That's a decision made with a long-term view ("grandchildren"). The alleged problem is that Parliament don't take a long-term view and decisions made based on a long term view are better than decisions made based on the five-year electoral cycle, ergo an independent commission with dictatorial powers would do a better job. So your scenario is exactly what we should want to happen.

MoJoeGo

Thrugelmir said:

EdSwippet said:

NedS said:

Playing devil's advocate, if I were the non-elected appointed Chief Commissioner of such a Quango Commission, on a six figure salary, what controls would be in place to ensure I were acting independently and not making decisions influenced by my own personal interests and circumstances? After all, I would naturally want to save a large portion of my six figure salary towards my retirement in a tax efficient manner.

Something similar to the existing controls that prevent MPs from making rules that result in them getting better pension terms than those available to the private sector?

Oh, hang on ...

Life span as an MP can be relatively short though. For many not a career. 

Indeed, for some it might be no more than a bit on the side...

fineclaret

Reduction of the LTA would not trouble me unduly even if I was close to it (which would take some stonking performance over the next 12 years; I'd be only too happy to share some of this with HMG, since they gave me some of the money to invest!). It is, at least, a 'progressive' tax.