Don’t forget the public sector pension crisis

The daily media agenda in this election campaign means an issue crops up, makes a brief impact, and then it’s gone. One such issue is the public sector pension crisis.  Here are some details on this issue for you to ponder on. Facts first:

You might think there aren’t too many ideas to fix the problem. Well I’ve spotted these sensible sounding ideas.

  • Raising the pension age by three months every year says the IEA 
  • The Confederation of British Industry’s 16 page report, Getting a Grip, is full of good suggestions

In Surrey Heath, I think I’m right in saying, operates a funded scheme with other Surrey councils, and for last year employer pension contributions were in total just under 19% of council tax. Just a reminder that it’s our taxes pay that for public sector pensions, and all the other taxes we pay go towards the unfunded public sector pensions.

Don’t want to give you the collywobbles, but the old age pension is also unfunded, meaning taxes paid today pay for pension today. If at the creation of the welfare state we’d created a fund into which people paid money, and then to draw on that fund in retirement, then we wouldn’t be in this pickle now.

2 thoughts on “Don’t forget the public sector pension crisis

  1. Pingback: Public sector pensions crisis recap « Lightwater

  2. Pingback: Public sector pensions crisis worse than thought « Lightwater

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.