Wednesday, March 29, 2006

Striking a Chord

It took me quite a while to figure out exactly who in the public sector was on strike yesterday. Which is quite embarrasing considering I'm a civil servant.

I for one think it truly appalling that the government wants to back out of its pension deal.

You can't say on the one hand that people should have employer pension schemes as they can't rely on what the state gives them but then say as an employer that in order to have the pension you have paid into over the last 25 years (or more) you have to work for five more years than you agreed. It just doesn't add up.

By all means reform the pension arrangement for future employees but you can't expect existing workers to be treated in the same way. Not without some kind of compensation.

Naturally Joe Public was interviewed and came out with the usual crap about private sector vs. public sector and wasting tax payers money on cushy pensions.

Point 1 : More private sector employees retire at 60 than public sector ones

Point 2 : The public sector workers are claiming from the pension they have paid into for at least 25 years. Although this may come from tax payers money, it would only be the case if the books didn't balance (Like they don't in many private sector companies). This isn't the responsibility of a public sector employee any more than it is for a private sector one.

Point 3: The state is more than just something you put your taxes into, it is an employer just like any private sector company and it has an obligation to honour its pension schemes just like any private sector company that has them.

Point 4: The government is perfectly happy to take money from workers pensions but isn't quite so happy to do the same with its own. On a similar note, M.P.'s (Ministers especially) continue to receive pay rises way above inflation but their minions are lucky to get anything over the base rate. Hardly what you would call 'Leading by Example' is it?

To put it bluntly, if the government were to stop wasting money on:

Ridiculous new schemes like the National Identity Card,
Pointless public enquiries that gather lots of damning evidence but find no fault with anyone,
Illegal invasions of other sovereign territories,
Subsidies to privately owned rail companies that deliver a less reliable and more expensive service than the public company they replaced,
Expensive military equipment that we stopped needing before it was even built,
Government Advisors, Consultants and PR

Then it would have enough money to be able to effectively manage its supposedly useless workers and provide them with a fair salary and the pension they have worked for.

2 Comments:

At 2:35 pm, Blogger Infoholic UK said...

Ah, agree with the thrust Phill, but I have to take issue with your point 3.

Private sector companies are also finding that they cannot honour their pension obligations. They are generally taking the approach of either closing their Final Salary schemes and switching to Money Purchase, or if they've left it too late (or are very cynical), going bust and leaving their pensioners with nothing. The public sector are getting off lightly by comparison.

Sad to say, but the sudden drop in annuity rates means that nobody, private or public sector, can afford to pay what they promised any more and we'll all have to work longer. Fact of life...

 
At 9:30 am, Blogger Phill said...

That doesn't change the fact that they still have a legal obligation to honour the pension arrangements their employees have contributed to.

By all means the government can stop new employees from joining up - this is already the case in the civil service, I'm not on the same scheme as those who joined two years earlier than me.

What they cannot do is change the conditions of those who have already signed up to the pension scheme. It is illegal. FACT.

Does it not strike you as odd that about 15 years ago the government was encouraging everyone (private & public) to take early retirement and now there is a pension shortfall?

Could it be that in 15 years everyone is suddenly living longer or could it be that the additional burdon of all those mid to high level employees retiring early (as they were the only ones who could afford to)on cushy pension schemes has drained the funds of capital needed for future investment?

 

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