Quote:
Originally Posted by Hugh
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
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 |
I don't understand your calculation, what salary is that based on?????????????? You don't quote the salary the figures are based on, which is important if you want to make a proper comparison.
As I see it 13.5% employer contribution against an average employee contribution of 6.5% as pretty generous.
Thats a total pension contrubution of 20% of your salary each month.
VM, for typical example of a decent employer in the private sector with decent benefits only matches your contribution. Therefore, If I want to get 20% into my pension I would have to contribute 10% of my salary.
Based on your figures above.
A local authority worker on £25,000 a year is getting the same amount of money being put into his pension plan as a VM worker on £38,400 a year. Based on a contribution of 6.5%
That is where the disparity between public sector pensions and private sector pensions is.
And let's not forget, there's plenty of six figure+ salaries in the public sector so imagine how big the disparity is there.
The biggest annoyance is that whilst I'm paying through the nose for my pension I'm also contributing extra to public sector pensions.
You'd have to be blind not to see why private sector workers are thinking these cuts are a long time coming. It's about the time the public sector shared our pain.