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:
- Local Government pension deficit is £53 billion, says TaxPayers’ Alliance . Their report include tables on the deficit for each borough, county and unitary authority in the country.
- The pension for Fire Chiefs is one example of public sector pension profligacy.
- The Financial Times useful web page on the Pensions Crisis.
- The Guardian’s alternative view on Exploding the myth of public sector pensions.
- BBC’s Robert Peston’s view.
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.