Monday, Jun 29, 2009
So we're all in it together, just 4 or 5 times as badly in the UK....
Times Money: Public sector pensions liabilities
Sorry not set out brilliantly here but these figures are scary....
Table 1
Net Public Pension Liability
at schemes own discount rates
Country % of GDP4 US Dollars (billion)
US 15% $2,088
UK 64% $1,267
Canada 12% $151
The shape and structure of the assets and liabilities, and the analysis of their sensitivities,
are set out in the main body of this paper. However, in summary, it is clear that the UK
stands out as having a major, and distinctive, problem in relation to its public sector
pension promises. This has been brought about because a large majority of the UK public
workforce have generous, fully index-linked final salary pensions which are completely
unfunded, whereas funded (partially or fully) public schemes are the norm in the US and
Canada.
10 Comments
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1. Jimandco said...
Link is
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5677888/UK-public-sector-pensions-burden-worse-than-in-US.html
2. mr g said...
Simple answer to the UK's public sector pension problem:
1. Increase employee contributions.
2. Move all employees from final salary to money purchase schemes.
3. Increase pension age to 65.
4. Reduce the amount of deadwood, jobsworths, accountants, consultants, street football co-ordinators (I kid you not, one council in Scotland recently advertised this role), diversity facilitators, climate change managers and recycling assistants.
At this moment my local council, (Calderdale, in West Yorkshire), has 87 posts advertised on it's website including a Director of Economy and Environment at a salary of £121k per annum.
No recession or pain in the public sector is there?
3. bidin'matime said...
The link doesn’t seem to work, but here is the original report – worth a read – they point out that the Govt figs exclude Royal Mail, Coal Board, railways etc, which would be (and probably will have to be) picked up by the tax-payer when they run out of cash. For the full report see (a href="http://www. bnac.org/files/BNAC%20Public%20sector%20pensions%20BN49%20-%208%20June%2009.pdf ") click here (/a) Very scary.
4. Bidin'matime said...
Sorry – I’ll try that again For the full report click here
5. bidin'matime said...
Must be getting late! My second go has dissappeared! Did I forget to add my admin password? Oh well, let's have another go..
For the full report click here (/a)
6. bidin'matime said...
I'm not going to give up..!
For the full report click here (/a)
7. bidin'matime said...
For the full report click here (/a)
8. bidin'matime said...
okay I give up. time for bed..
9. phdinbubbles said...
Goodnight!
10. devo said...
rotflmaobbq!