Pensions Winners and Losers

The countdown to the biggest strike in years continues with just two days to go and so we thought it would be a good idea to set out for members who really wins when our pensions are decimated.

Well the important thing to remember is that you don’t win! The increase in contributions combined with increased retirement age mean that the majority of staff lose out. Throw in the conversion to a career average scheme in 2015 and this mops up all those who may have been slightly better off. 

The governments own experts explain that the only way a career average scheme would improve benefits on retirement would be if the accrual rate of the overall scheme increases. The accrual rate is the rate at which your pension builds up and in the local government scheme this is set at 1/60 so effectively you accrue one 60th of your annual salary in pension benefits for each year of service. As this will remain the same everyone will receive less benefit on retirement.

In contrast our elected politicians, the very same ones that are stealing your pensions do pretty well out of the public purse.

For example Local Government Minister, Eric Pickles will have racked up a handsome annual pension of £43825 not by the time he retires but by the time of the next general election… That’s a whopping 14.3 times more that the average local government worker who would have to work for 124 years to achieve the same benefits in retirement.

And what about that smug, old Etonian George Osbourne? Well he gets a decent £32977 by the next election which the average public sector worker earning the median public sector wage would have to work 97 years to achieve. I wonder what the millionaire baronet will spend it on.

Remember this is not what they will be getting on retirement this is what they will have accrued if they were to retire at the next general election.

The situation is the same for all of the cabinet and on average an MP only has to work for 3.5 years to accrue the average local government pension. It’s not as if these people are poor in fact most of the cabinet are millionaires. It does show however the hypocrisy of the debate if only on a basic level and also that we are being governed by a bunch of people who want us to do as they say rather than do as they do. 

See you on the picket lines

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1 Comment

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One response to “Pensions Winners and Losers

  1. k.

    Is is important that the Union will explain in more details why the changes is effecting the level of pension the members are receiving in comparison to the previous schemes.

    If members can see and understand the difference than the argument is won.

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