Quote:
Originally Posted by Pierre
Of course it matters.
The police, and most other public bodies, don't generate profits they are 100% paid for by the taxpayer.
When you pay your Council Tax, and please check..... I'm pretty sure there isn't a line item on your bill that says Virgin Media, therefore you are not funding my employers contributions to my pension.
If you subscribe to Virgin Media services, then you are....cheers. But you have a choice and your continued contribution is not guaranteed.
Not at all, that is a potential liability to the taxpayer..............that's a fact.
I agree it may be less if the police have invested well, however the way the stockmarket has performed over the past 4 years I doubt they have done that well.
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Your last paragraph appears to clearly demonstrate that you have not grasped the concept at all.
To simplify the concept and to put it into a Virgin Media employee's viewpoint..... if your employer was legally able to retain your contribution and retain theirs and use both for day to day expenses on a promise that you will get a good pension at the end (maybe) would you be happy if they realised that their model was deeply flawed and tried to give you three parts of not a lot. That is what the various governments over the past few decades have done and thus the problems ahead.
Quoting stock market performance over the past four years is ludicrous. Pensions are built up over a working lifetime and any performance has to be measured over that duration. Looking back is not much of an assurance in looking forward but one thing is a certainty.
That certainty is that inflation, interest rates and investment performance is dynamic. 30+ years ago when interest rates were hitting 20% nobody would have predicted today's rates but 30+ years before that nobody would have predicted 20%.
IMO people who allow their long term pension prospects to be diluted are allowing the government to respond to a short term flat line interest rates and will pay massively long after the current bunch of idiots have retired to their country mansions to enjoy the fruits of their inherited wealth no doubt bolstered by lucrative deals.