Saturday, February 26, 2011

Forced Sales Ahead?

Public sector workers could see their 'gold-plated' pensions halved

Public sector workers could see their ‘gold-plated’ pensions slashed to make it easier to transfer services to private firms and charities. Payments due to hundreds of thousands of nurses, doctors and bin collectors could be cut to less than half under proposals being considered by the Treasury.The Government wants providers other than the State to take over the running of some services as part of David Cameron’s ‘Big Society’ plan.

Posted by alan @ 10:28 AM (1491 views)
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13 thoughts on “Forced Sales Ahead?

  • tyrellcorporation says:

    GOOD! I’m fed up subsidising other people’s retirement when I can’t afford a pension of my own.

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  • Student riots – you ain’t seen nothing yet!!

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  • ” Doctors can qualify for pensions of around £50,000. But transferring into a new private pension scheme could leave them with just £11,403 a year in retirement.”

    Dream on, every doctor in the NHS would strike and the entire NHS would collapse!

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  • I’m more scared of a mob of angry young NEETs than a tea dance of middle-to-late aged public sector workers.

    It’s also fairly uncontroversial if the changes to entitlements aren’t applied retroactively. Swiping away the pension entitlements of a 64 year old, who only has one working year to save, would be grossly unfair. Telling a 42 year old that they need to start saving for themselves is fine.

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  • @3..I sort of agree, a littel unfair telling a 64yr old they will loose 50% of their pension. However, all pensions including existing should be re-assessed IMO. Why should general public continue to subsidise others, whose pensions are grossly more than their own?

    And why should those in high places (eg PM’s) receive their gold plated pensions when they over-saw such a failure with the economy? OK it was the banks, but who the hell let them do it?

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  • Some contributors on this site love their tabloid fodder. The problem with public sector pensions is one of increasing longevity, not unfairness, or “gold-platedness”. The difference with private sector pensions is that a large proportion of the funds were siphoned off by the providers in charges, or the pensioners simply dumped on by the companies that ran them, or long contribution holidays introduced by the employers when they thought stock markets would rise forever (the brilliant foresight of economists). So now, having stuffed private sector pensions, they want to finish the job by doing the same to the public sector, the tabloids a vehicle for invoking the jealousy to smooth a path.

    The majority of public sector workers do not receive a full pension because they have not contributed for enough years (I think one quarter is the average). Not much gold there. Most public-sector pensioners work in fairly low salary jobs – nurses, manual workers, pen pushers of various kinds, teachers, etc.

    It’s just another way of chopping the incomes of people on modest pay. In the end who is benefitting most from deep cuts in public spending? Not the ordinary man in the street, public or private sector. It’s those with the real economic power.

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  • In two words, daylight robbery. A direct transfer from the population to corporations.
    If there are any middle eastern refugees reading, keen to bring their anti-government anger over here, please come over asap. People here are too suckered by the tabloid press and divided amongst themselves to think about resisting.
    N

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  • dohousescrashinthewoods says:

    Another angle to consider: public sector pensions are simply unaffordable, whether because of longevity or because of gold-platedness.

    Either way it seems obvious that they will be cut because UK PLC doesn’t have the money.

    If no one in the pensions market can offer anything like the level of a public sector pension, it does suggest that the affordable level is somewhere between the two.

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  • What pro-state complainers seem to forget is: state wages, thus state employee pensions, are a drain on the private economy, you know the one which actually pays the taxes, and more state jobs and benefits usually destroy/prevent more jobs than they create.

    Banker bonuses is a different problem caused by benefits provided to corporations (fake Capitalism) by governments.

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  • Whether or not they are deemed unaffordable depends on the Govt’s accounting. If our Govt claims we are in the position of Greece I wouldn’t trust their objectivity on anything financial. Also public pensions were reviewed very recently and contribution rates increased (at least in some cases) and declared viable. Now suddenly they are not. Less to do with public finances than political choices.

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  • The bottom line is that dedicated NHS employees like myself will stop contributing, or retire early if these ridiclous changes come to fruition. Then we will let the state keep us in retirement, like lots of private sector people presently do. Either way the state will help, either by subsidising the pensions along the way, or paying benefits in retirement.

    Gideon should concentrate his money saving efforts on the bankers who caused this crisis yet continue to benefit from it, and on his rich friends who manage to avoid and evade huge amounts of tax every year!

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  • @Phils

    I wouldn’t bank on a generous early retirement package now.

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  • phils
    Quite agree.

    mr g
    There are some early retirement offers in the public sector at the moment, though not what you’d call generous. But some people are taking them as they see a great dumper truck in the sky about to unload its contents.

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