emma royd Posted October 7, 2010 Share Posted October 7, 2010 Local Authority pensions are backed by pension funds. But what happens when there isn't enough in those funds to meet liabilities? Link to comment Share on other sites More sharing options...
Longcol Posted October 7, 2010 Share Posted October 7, 2010 But what happens when there isn't enough in those funds to meet liabilities? Then either employees contributions will need to rise, or pensions reduced. Link to comment Share on other sites More sharing options...
Guest sibon Posted October 7, 2010 Share Posted October 7, 2010 Then either employees contributions will need to rise, or pensions reduced. Or, we could employ more public sector workers. That means more pension contributions. Which fills the pot back up. Link to comment Share on other sites More sharing options...
Longcol Posted October 7, 2010 Share Posted October 7, 2010 Or, we could employ more public sector workers. That means more pension contributions. Which fills the pot back up. That would just increase taxation and future liabilities for pension funds. Link to comment Share on other sites More sharing options...
Guest sibon Posted October 7, 2010 Share Posted October 7, 2010 That would just increase taxation and future liabilities for pension funds. I know. But when we've got people jumping up and down about public sector pensions not paying for themselves, they need to take the numbers of employees into account. If we streamline the public sector, pensions cannot pay for themselves. In those circumstances, the taxpayer will have to foot the bill in the short term, with an eye on long term restructuring. Link to comment Share on other sites More sharing options...
Longcol Posted October 7, 2010 Share Posted October 7, 2010 I know. But when we've got people jumping up and down about public sector pensions not paying for themselves, they need to take the numbers of employees into account. We had a massive increase in numbers over the last 20 odd years. Plus a big increase in middle management in the £30k plus pa bracket thus increasing liabilities. Link to comment Share on other sites More sharing options...
crookesey Posted October 7, 2010 Share Posted October 7, 2010 What's happened is that everyone used to pay the same rate - so they've dropped the lowest rate contributions and upped them for the rest. Thanks for that, everything is obviously fine then. Link to comment Share on other sites More sharing options...
Wildcat Posted October 7, 2010 Share Posted October 7, 2010 I wouldn't mind paying 5 or 6 percent for a final salary scheme... Would you mind paying that if you were being paid 10% less? Link to comment Share on other sites More sharing options...
Wildcat Posted October 7, 2010 Share Posted October 7, 2010 I know. But when we've got people jumping up and down about public sector pensions not paying for themselves, they need to take the numbers of employees into account. If we streamline the public sector, pensions cannot pay for themselves. In those circumstances, the taxpayer will have to foot the bill in the short term, with an eye on long term restructuring. The odd thing is Hutton like the OBR earlier on this year said that public sector pensions are long term sustainable as they are. This is from his report: http://www.touchstoneblog.org.uk/wp-content/uploads/2010/10/hutton-chart1.gif Link to comment Share on other sites More sharing options...
Guest sibon Posted October 7, 2010 Share Posted October 7, 2010 Would you mind paying that if you were being paid 10% less? There is no evidence for that. Lord Hutton says so. I've emailed him my salary and those of several of my contemporaries from University with similar qualifications. Suffice to say that there isn't a 10% difference. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.