Is it time to tackle the public sector pensions time bomb?

[milquetoast1]

That last sentence doesn't seem to describe a well funded system...how are future payments going to be made if the number of public employees is going to drop..genuine question..obviously I may have misunderstood you..

A fund that requires an increasing number of employees to maintain future pension payments is the very opposite of a well funded system ... it's more like a pyramid selling scheme.

 

In fact, I know of many well funded schemes where there are no new employees because the original company has gone bust. Furthermore, most private salary schemes have been closed, preventing any new members joining, in an attempt to strengthen the funding.

 

Basically, a well funded pension scheme is one that operates irrespective of the numbers of new members joining it. It is well funded if the contributions of each individual, together with investment performance, is sufficient to pay the future benefits of each individual.

 

Most pensions in the private sector are now money purchase schemes, which is the very definition of a well funded pension scheme. What goes in is what comes out. But herein lies the unfairness of the comparison, £3k per year in a money purchase scheme might provide an annuity of £150k providing a pension of £6k per year. A public sector worker might claim that he/she is paying £3k into a pension scheme too, but they are still expecting half their £43k salary as a pension.

[crookesey]

A fund that requires an increasing number of employees to maintain future pension payments is the very opposite of a well funded system ... it's more like a pyramid selling scheme.

 

In fact, I know of many well funded schemes where there are no new employees because the original company has gone bust. Furthermore, most private salary schemes have been closed, preventing any new members joining, in an attempt to strengthen the funding.

 

Basically, a well funded pension scheme is one that operates irrespective of the numbers of new members joining it. It is well funded if the contributions of each individual, together with investment performance, is sufficient to pay the future benefits of each individual.

 

Most pensions in the private sector are now money purchase schemes, which is the very definition of a well funded pension scheme. What goes in is what comes out. But herein lies the unfairness of the comparison, £3k per year in a money purchase scheme might provide an annuity of £150k providing a pension of £6k per year. A public sector worker might claim that he/she is paying £3k into a pension scheme too, but they are still expecting half their £43k salary as a pension.

 

Welcome, it's now three who understand pensions.

[Darth Vader]

Why do you insult me, you have no idea what I did within the pensions industry? Obviously it was me who was responsible for the world wide crash and recession, well done you have cracked it. Oh by the way my investments have almost recovered to their pre crash levels, I'm so pleased that yours haven't.

 

As for 'feathering my own nest', I stayed on for three years extra, working my way out of the recession, whilst public sector workers simply took their packages as their god given right.

 

I guesss it's the 'I'm alright Jack, mentality' that doesn't go down too well with me. People had no choice than to have their wages go into these crappy schemes that the rich and priviliged think they can dip in and out of when they please, and others seem to think they are some sort of holy grail.

 

You have no idea about my investment levels, or how they have performed, so don't get too gleeful about my losses, continue to enjoy your gloating over those who have worked hard and are continuing to have their pensions and retirement years raided though.

[crookesey]

I guesss it's the 'I'm alright Jack, mentality' that doesn't go down too well with me. People had no choice than to have their wages go into these crappy schemes that the rich and priviliged think they can dip in and out of when they please, and others seem to think they are some sort of holy grail.

 

You have no idea about my investment levels, or how they have performed, so don't get too gleeful about my losses, continue to enjoy your gloating over those who have worked hard and are continuing to have their pensions and retirement years raided though.

 

Just admit that you know bugger all about pensions, and stop making yourself look daft. It was you, by the way, who said that you were getting 'naff all', and blamed me for it.

[Darth Vader]

Just admit that you know bugger all about pensions, and stop making yourself look daft. It was you, by the way, who said that you were getting 'naff all', and blamed me for it.

 

No, I didn't say I was, I said, 'so many of us' and used 'we' to show that those people have my sympathy, and I stand beside them, in their fight.

 

You were the one who professed to have knowledge of this, having worked in the pensions sector, not me. I know very little, but enough to know that many have been screwed, and a fair few have still profited nicely out of that.

It doesn't take a genius to work that out.

 

As long as your conscience is clear, that you've not promised to hard-working people something that has not come to fruition, or had anything to do with conning decent people, whilst feathering your own nest, then what's the problem?

[JFKvsNixon]

How will the government get around the point that the public sector contributions has not been invested, when they work out the current value of the pension if they stop and close them? The value of their pensions would be unknown as there is no way of knowing how long they would have claimed.

 

I am assuming that a normal pension would have a statement outlining how much is paid in, and then how much it's worth after it's invested.

[crookesey]

No, I didn't say I was, I said, 'so many of us' and used 'we' to show that those people have my sympathy, and I stand beside them, in their fight.

 

You were the one who professed to have knowledge of this, having worked in the pensions sector, not me. I know very little, but enough to know that many have been screwed, and a fair few have still profited nicely out of that.

It doesn't take a genius to work that out.

 

As long as your conscience is clear, that you've not promised to hard-working people something that has not come to fruition, or had anything to do with conning decent people, whilst feathering your own nest, then what's the problem?

 

Read your post number 67, and then tell us that you didn't say what you clearly said.

 

Do you dress up as Mother Theresa when you are on one of your goody goody missions?

[Darth Vader]

Read your post number 67, and then tell us that you didn't say what you clearly said.

 

Do you dress up as Mother Theresa when you are on one of your goody goody missions?

 

I had to read it again, to quote myself, I don't need to read it a third time, maybe you do.

 

I guess from behind, you might get us confused, with the black cloak, but from the front, you can definitely see the helmet.

[crookesey]

I had to read it again, to quote myself, I don't need to read it a third time, maybe you do.

 

I guess from behind, you might get us confused, with the black cloak, but from the front, you can definitely see the helmet.

 

Sorry, I've obviously been attempting to teach a pig how to sing, my mistake I won't disturb you again.

[Darth Vader]

Sorry, I've obviously been attempting to teach a pig how to sing, my mistake I won't disturb you again.

 

Or your granny to suck eggs, either way, thanks, that's much appreciated.