Saturday, February 14, 2009

Actions speak louder than words Gordon!

Gordon Brown to scrap final salary pensions for MPs

GB has called for an investigation into how MPs’ retirements are funded because he fears they are becoming too expensive for the taxpayer. The current total liability of public-sector pensions to the taxpayer is officially estimated at £650 billion, The move by GB could eventually allow politicians to propose scrapping all public-sector final salary schemes, currently enjoyed by millions including civil servants, council employees and health workers. Well if he does this before the next election and also puts in words the entire MP benefit package will be limited I might just vote for him! However, I think its all words no action. If he does take action then I am sure he will tell the MP's don't worry instead you can claim £2,000,000 per annum in expenses or second home allowance etc

Posted by who stole my pension? @ 02:21 AM (1436 views)
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22 thoughts on “Actions speak louder than words Gordon!

  • japanese uncle says:

    Crash must follow the recent campaign in Tokyo, in which politicians (MPs’ and government officials’) salaries are drastically reduced in view of the economic crisis.

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  • Eternal Sceptic says:

    Why stop with MP’s? The entire public sector is an obscenity when it comes to pensions. I would retain index linking for police, firemen and teachers, and no-one else. I would cut council tax by 50% and fire half the council workforce.

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  • This is just to distract us away from the main event that is unfolding. In reality GB doesn’t give a toss as to how MP’s retirements are funded.

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  • This fat cat public sector pension idea is a complete myth. The average public sector worker receives a pension of something like £90 a week? and they contribute 6 1/2 to 7 1/2 % of their salary to get that. If the pensions are stopped by the government then these monies will just be made up anyway by minimum pension guarentees with no contribution from the employees themselves.

    My mum woked as a nurse for 18 years, paid into her pension most of that time and is no better off than someone who never saved a penny into a pension and receives pension credit, minimum income guarantee and housing benefit.

    The real issue should be to make everyone pay into a good pension and make sure those that work all their life and save for the future are substantially better off than those who make no provision. The current system is a complete disincentive to save and unless that gets sorted we are all going to h*ll in a handcart.

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  • materialistic weasle says:

    He just has to force the civil service and the council to follow suit now.

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  • Lets see what changes this actually results in …

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  • Credit where credit is due( ! ), if he follows through on this. He will end up vilified anyway, so he probably should have hung on to the money.

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  • Its because 80% of laws come from EU, most via UN think tanks like IPCC, national democracy is being dismantled as we watch. Counties and Districts must fight back.

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  • tyrellcorporation says:

    @Paul . ..Nothing, nada, zilch!

    Just a cheap headline because some focus group has flagged this as a joe public gripe. Lets remember Alan Johnson’s total and rapid capitulation to the union barons when talking about the public sector retiring at the same time as people in the private sector – heaven forbid. So those with the most generous pensions get to have that money paid to them for longer – mmmm that makes sense!

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  • It doesn’t matter what he says because he knows it’ll be a Tory government for the next 20 years who will need to deal with the actual issue anyway.

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  • tyrellcorporation says:

    … and we’ll be picking up the tab for everything anyway. And our children and children’s children…

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  • I don’t think this is all words. Public sector final salary pensions are for the chop. MPs will lead the way so no excusing others within the sector. Of course MPs won’t be any worse off in reality, but it’s a great way to turn the tables when the objections start coming in.

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  • Geezerfromireland says:

    Be interesting to see what will happen I will feel sorry for the public sector workers who will have a lower salary and a lower pension at the end compared to their private sector counterparts this is privatisation of public sectors throught the back door which as a result will be a greater burden to the taxpayer.

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  • tyrellcorporation says:

    Plato, I just can’t see it happening. The Unions pay to keep the Labour Party running, the first whiff of strike action and the issue will be kicked into the longest grass possible.

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  • This is just a Daily Mail style article from the Telegraph. The problems are not so much generous public sector schemes as yawning inequalities in pay and conditions. MPs often earn enormous sums from outside work on top of a pretty decent salary. Bankers and senior industrialists have massive pension pots because they receive massive pay. Meanwhile the ordinary private sector workers have had their pensions stuffed from all sides, not only from removal of tax credits but by payment holidays for employers who thought stock markets would rise steeply for ever, and incompetent fund management by highly paid managers. (The Boots scheme is I think a model of how a fund can be well run.)

    The claim that MPs work for 20 years for £30k pension only holds for the top earners (cabinet ministers). It makes no sense to compare with the average worker (on ca. £25k). Compare the average worker with a banker and you could say they’d need to work 500 years.

    I don’t know about the MP pension scheme, but other public schemes have raised retirement age and increased contributions. Public schemes are not an unfair advantage to a cosseted section of the population but an exemplar of how pensions should be. If the govts of the last 30 years knew what they were doing, pensions wouldn’t be in the mess they are now. A lot of people in public schemes were persuaded to transfer into rubbish private schemes by the Thatcher govt, so they’ve been stuffed too.

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  • Yet another investigation/review. Is Gordon Brown actually capable of making decsions without using others as a support

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  • tyrellcorporation says:

    @letthemfall

    “A lot of people in public schemes were persuaded to transfer into rubbish private schemes by the Thatcher govt, so they’ve been stuffed too.”

    And there you have it in a nutshell. If you are outside the state sector you have to pay over the odds for vastly inferior pension products that can go bust at any time. Hence the head-long drive by people to buying property as an investment.

    The Labour government should have introduced a system whereby ALL citizens get access to a state backed pension scheme via a combination of personal and state contributions. They didn’t do this, in fact they raped the once healthy private pension provisions by abolishing the tax benefits. This has decimated private pensions and has made the pension apartheid immeasurably more acute while creating a two-tier society during retirement. This, IMO will be a source of major social unrest unless it is sorted out – but it won’t be.

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  • Don’t doubt what you’re saying tyrell…[email protected]:35… but I think they are setting the public sector up for a confrontation where they will get no public sympathy. If they strike they’ll be beaten into submission whichever government is ruling. In fact not only will they lose the current pension arrangements, many will lose their jobs as well if they fight too hard.
    There will probably be an agreement keep existing arrangements but contain all new entrants within a new scheme.

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  • tyrellcorp:
    I agree with you, although I doubt there will be too much unrest over pensions (except by pensioners perhaps) because younger people give them little thought).

    plato:
    I don’t think the govt will renege on existing arrangements, but, as you say, close them to new entrants. Steps towards this are already taking place in the civil service, which now offers a defined contribution scheme too.

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  • [email protected]
    ‘ll be a Tory government for the next 20 years who will need to deal with the actual issue anyway

    It was the Tories ‘wot’ caused this debacle under Lady T – bribes to her stormtrooper policemen – actuaries fortold the mess at the time.
    I think they were illegal then, as I do now – the factoring was (and is) a big lie.

    These pensions should require the true cost to be revealed, and paid fo,r by the recipients if they want them.

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  • Gordon Brown will go down in the history books as the man who ruined the British pension system starting with his removal of the tax credit when Nu Labour first came to power.

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  • @ jack c
    Gordon Brown will go down in the history books as the man who ruined the British pension system starting with his removal of the tax credit when Nu Labour first came to power.

    See comment 15….Lady T…got there first, by nearly 20 years – Gordo followed the script to stay in office.

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