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Old 14-10-2010, 08:30   #2
Hugh
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Re: Town hall pensions

Can we try and not repeat the Mail's emotive language, please?

Whilst I am in agreement that pensions need reforming, as Lord Hutton himself stated
Quote:
Lord Hutton rejected the frequently made claim that public sector pensions are gold-plated.

He pointed out that the average pension in payment was currently £7,800 a year, which he described as modest, not excessive.

And he rejected the idea put forward by employers' organisations that because private sector pension provision was poor by comparison, public sector pensions should be dragged down to the same level.

"I have rejected a race for the bottom," he said.
In fact, a table on the webpage linked to above shows some interesting figures for local government employees -

Worker - Local Government
% salary paid* - 5.55 - 7.5%
Employer contribution* - 13.20%
Pension age* - 65
Average pension - £4,044

So, £4k per annum works out at approx £335 per month - must be a new definition of "gold-plated" I hadn't come across before.......


* Depending on scheme Source: Independent Public Service Pensions Commission report, government departments
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