Tuesday, 16 December 2008

Public Sector Pensions ----------- THE TRUTH

A couple of weeks ago David Cameron made a speech where he argued that public sector pensions should in his opinion be reformed (this is code for take it off them as they don't deserve it) here is a report of the initial speech and its from the Telegraph so clearly its not balanced as it comes from the right.

At the same time I'm also posting this, which is a simple 10 point response to the initial story and thanks to Tom and Labouandcapital for posting it. The response is by Naomi at the GMB and as she points out,

1. Public sector pensions potentially keep 12million people from reliance on state benefits in retirement.
2. Public sector pension schemes, in particular the funded Local Government Pension Scheme, generate billions of pounds worth of investment in the UK economy.
3. Public sector pension schemes encourage retirement saving among 5.75m public sector workers – 85% of public sector workers are members of a pension scheme (compared with 40% in the private sector).
4. Lack of retirement saving in the private sector will lead to more poverty and significant pressure on state benefits in the future.
5. Greater poverty in retirement resulting from inadequate company pension provision in the private sector will lead to greater pressures on the NHS and local care services.
6. All workers pay for everyone’s retirement income. The price of goods and services includes the cost of private sector pension provision, just like tax levels include the cost of public sector pension provision.
7. State benefits are funded by national insurance and taxation paid by everyone and used more by those with lower incomes e.g. those with inadequate pension savings due to poor private sector provision.
8. Public sector pensions account for about 20% of public sector workers’ remuneration packages.
9. Public sector pension schemes are good quality and rightly so, the country needs private sector schemes to be as good. Lower pensions for all means poverty in old age for all.
10. ‘Apartheid’ was the official policy of racial segregation formerly practiced in the South Africa, involving political, legal, and economic discrimination against non-whites; it is not an appropriate description of occupational pension provision.

Now I will declare an interest in this story, I am married to someone who is paying into a public sector pension scheme, someone who is committed to her job and who believes that the public sector and its workers provides a service for the all the people and not just those who can afford it.

So thanks dave for giving us all another reason to remember why tories bad, labour good, as Labour works for the good of the many not just the few.

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