Latest News
UK Lifetime Pensions for Retired Public Servants Are About To Be Slashed
Breaking News from London: 10th March 2011
DAVID BUIK - Chief economist with BGC Partners in London comments:-
"It's been pointed out at the moment that if we carry on at the rate we are, the Government is now - or the taxpayer is paying £4 billion in terms of contributions to the public sector (pensions) which will rise to £10 billion by the end of 2014, and we can't afford it".....
"I mean, it's likely that we'll lose 60,000 jobs in the public sector between now and the end of the year, starting perhaps in April. This just exacerbates the problem, but I'm afraid we have to bite the bullet, because everybody else in the private sector is going to have to cut its coat according to its cloth and has done so. Full two thirds salaries on retirement is now in dreamland, and I'm afraid the public sector has to put up with it themselves".
The UK is bracing for massive strike action as a result of these proposed amendments to public service pensions. Unfunded government pension schemes around the world, including the Commonwealth and State schemes we have in Australia are becoming an enormous burden on the tax payer. In Australia it has been the preferred option to choose a lifetime pension over a lump sum payment for these schemes. We may need to in future put more emphasis on the legislative risk associated with the pension option in the future!
Source : ABC Lateline Business 10/3/2011.
Photo by FreeImages.co.uk
