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Original poster

To think public sector pensions should be slashed?

664 replies

Monwmum · 14/11/2024 11:12

I'm probably going to be slated for even suggesting it....but in the private sector, high percentage final salary pensions were phased out in the early 2000s because they are a money pit and unsustainable. They were continued in the public sector as a sweetener because (apparently) public sector jobs were lower paid.

This simply isn't the case anymore. After years of frozen pay or meagre 1 or 2% pay increases in much of the private sector versus mainly regular inflation based pay increases in the public sector, this gap has been reduced if not closed completely. However, public sector pensions are still getting contributions of the high 20% figures while private sector pensions range from 4% -10%.

Quite a difference! Am I being unreasonable to say this would be a good place to start saving some of our tax money? And before people start saying there would be outrage just remember this was done to every private sector employee in the early 2000s so it can be done.

OP posts:
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Singleandproud · 14/11/2024 11:25

Because the govt is investing in the old people of tomorrow so they can reduce state pension and encourage retired people to be self sufficient, so they lead by example by covering PS employees.

Ponoka7 · 14/11/2024 11:25

As said, it isn't a race to the bottom. In the UK we never seem look up and question the lack of good wages/pensions/large profit setting, we only ever want to make life difficult for everyone. I wasn't a fan of Corbyn but low employer contributions to private pensions, was on his agenda.

Original poster
Monwmum · 14/11/2024 11:24

Ok I knew I'd get slammed. I think everyone is missing my point. Public sector jobs are paid for by all of us... including the pension contributions. And they are more than double those in the private sector so it just seemed a place where some money could be saved? You could still make them more competitive than private but cut them by say 25%?

OP posts:
aodirjjd · 14/11/2024 11:23

Public sector doesn’t have final salary pensions anymore.

most are on average salary now.

edit: any cost saving taken by slashing pensions would be really slow to come through as you can’t change the pension years you’ve already agreed on. There are loads of people who are now retired who are on final salary pensions for example.

Aaron95 · 14/11/2024 11:22

There are almost no final salary pensons in the public sector any more. They were phased out at the start of the 2000s.

Why do you want to penalise public sector employees? Would it not be better to campaign for private sector employees to be given better packages?

Ednafrommooneyponds · 14/11/2024 11:22

The public sector body I've worked for for a decade has been on a pay freeze for 7 of those years then two years below inflation and they haven't yet negotiated this year's pay deal. Not sure where you're getting your pay increase figures from.

The private sector equivalent of my job has a starting salary greater than I receive after a significant promotion. We also receive about half the pay of our direct equivalents elsewhere in the world. Cut our pension by all means but be prepared to double the pay or face a mass exodus. Bearing in mind we already have pretty terrible retention rates.

araiwa · 14/11/2024 11:22

I just want to understand your mentality

If you actually think it is actually a problem, why wouldn't your idea be to improve private pensions instead of cutting public?

ScholesPanda · 14/11/2024 11:22

In the civil service, we didn't receive a pay rise of higher than 2% from 2010 until 2022. For several years it was 0%. Our lowest grades are being abolished as there are now several grades that are all on the minimum wage. So the premise of your OP is wrong.
DH is in the private sector and has had pay rises of way above 2% numerous times over the same period.
Typical crab in a bucket mentality.

Original poster
Monwmum · 14/11/2024 11:22

I'm not advocating a race to the bottom but this is tax payers money being used ....we seem to lose sight of that? At a time when pensioners have had the winter fuel payment removed should public sector pensions really be more than double those of the private sector?.

OP posts:
OneRingToRuleThemAll · 14/11/2024 11:21

We don't get final salary pensions, we get career average where each year paid in is worth 1/49th of the final pot. So it's almost impossible to get a full salary at the end.

LittleRedRidingHoody · 14/11/2024 11:21

GabrielFaure · 14/11/2024 11:17

People look at the whole package. Slash the pensions and you’d have to raise salaries to private sector level.

This. IMO it's well known if you move to Public Sector your salary will drop but you'll get some of it back in your pension.

Cameroptera · 14/11/2024 11:19

There have already been changes to public sector pensions, most are not on the good pensions of old. And even if the pensions are better than private sector, why not campaign for private sector pensions to be better, instead of a race to the bottom? Many private sector jobs command perks that do not exist in public sector such as bonuses, so that's another consideration.

GabrielFaure · 14/11/2024 11:17

People look at the whole package. Slash the pensions and you’d have to raise salaries to private sector level.

Singleandproud · 14/11/2024 11:17

The vast majority of public servants aren't on DB pensions anymore. Yes, I get 19% put in by my employer and it is one of the reasons I decided to work for them but it isn't a race to the bottom. You are welcome to apply and become a member of the public service if you wish, every job has its perks and their downfalls you should take the employee offer into consideration when you apply for a job.