To think public sector pensions should be slashed?

[Monwmum]

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.

You never know when you might need help from one of us after all...

I have 2 part time jobs. One in the public sector with a pro rata £60k salary and a good pension, the other in the private sector with a pro rata £90k salary but a shit pension.

So I don't believe it when you say that the pay differential no longer exists.

The public sector do not get pay rises linked to inflation. This is why the doctors were striking as their salary's had not kept up with inflation to the extent of needing a 35% rise to equalise to whatever point in the past they were using as a baseline.

I work in civil service. I get paid a lot less than when I worked for a private company but needed more local work to be able to care for parents. Lower paid, no private health care, no bonus, hardly any pay rise in last 8 years, no other perks, far more stress and rigid rules. I get paid less than all my friends and now have anxiety and depression thru my work. No final salary pension and less pay means less pension conts. It’s a joy

Many of those elderly people losing the winter fuel allowance are the worst for their 'good old days' golden handshake public sector pensions 😂. Ask any retired Nurse in their 80's about their £1K per month works pension.

Yes, let's scrap pensions, I'm sure all the public sector workers will continue delivering our babies, emptying our bins, wiping our granny's bum, arresting paedophiles, carrying us out of burning buildings, stopping terrorist etc for lower salaries than the private sector....

I could walk out of my PS job and breeze into one in the private sector paying at least double (and with lighter workload) .

The main distinctions are the pensions differential and the sense of pride I get from doing work that makes a difference.

I am a retired civil servant after 40 years service. During that time there was rarely a year that I didn't have a second or third job or work a number of hours overtime, because my salary wa so low, even with London Weighting. The thing I am most grateful for is my indexed pension which as a single person has allowed me to live a reasonable life without worrying about every bill that comes in.

Not surprised you have been slated - as nearly a third of all workers are in some way employed by the government. Most have absolutely no idea how valuable their defo ex benefit schemes are - and that even as average salary rather than final salary they are so far beyond the reach of most private sector workers.

there is a reason private schools have been coming out of the TPS which is the government teachers pension schemes - they just cannot afford the massive contributions required to keep pace - for some schools it’s been millions of pounds in additional contributions. Yet 93% of teachers work in the state sector and are still on those DB schemes that a commercially run enterprise can’t afford .

one head teacher realised that public sector pensions were so beneficial compared to private sector as she only knew people with a defined benefit scheme based on salary !!
OP you are however right - our economy is broken until we fix the public sector pensions black hole!

So what you want is for people to give up their pensions, stay on low pay and wait for the magical productivity genie to arrive?

Teachers and HCPs should not be subject to "PRP" style regimes, its too complex and would be used to compress salaries.

Funny how some on the right tried to keep down wages and partly blamed increases on inflation.... yet the Tories, then Labour settled public sector strikes but inflation continues to fall......

How come your economic theories don't apply to Director pay? which has outstripped productivity by many multiples.... yet paying more to a Carer or a Teacher would be "inflationary"

Final salary pensions ended in 2011, it’s now career average. Those who had final salary can keep that up to 2011, pensions after that changed to career average.

I have been thinking n the Teachers Pension Scheme for only 7 years (late career change) am retiring in December and will get 35k tax free lump sum and 5k per year pension.
This is a big reward for a short term, and is the less favourable pension compared to teachers who have been in for their whole career and has an ever cushier pension and who are really raking it in.
The system absolutely needs to be overhauled so that pensions are equitable across all sectors.
My neighbour retired on a large pension from the Civil Service aged 55! No way is that sustainable or fact the younger working population whose taxes are paying for it.

Sounds like your employee contributions are less than mine. Your employer contribution is more than mine. Your salary is higher than mine. And you want me to feel sorry for you?

Peoplein.the public sector work for about 2/3 of the salary they'd get in the private sector. Eg. A senior accountant in the public sector, a lineanager to 8 people and countersigning officer to 3, will be on about £63k unless gets London weighting. In the private sector would be paid about £85k. That's why they get good pensions. I'm sure they wouldn't mind getting a big pay boost but a smaller pension. DH was on £65k in civil service and a similar job outside was paying £115k. One of his colleagues left her £55k paying job and went into private sector on £90k for very similar work. The only thing is the lower admin grades in civil service are on more than they'd get in the private sector.

I was in a public sector job once. I have fairly decent pension from it.
In return for that I worked long hours with no extra pay lots of the time not having a day off for weeks on end. I spent most of the year out of the country but still had to pay basic rate tax. I didn’t see my family for months on end. I wasn’t allowed to join a union and was definitely not allowed to ask for a pay rise.
In the course of my employment I was sent by the British government on numerous occasions to sort out someone else’s problems and expected to give my life if needed.
I think I earned my pension

Yes I wish this would happen.
It would make it much easier to compare pay and it would probs help public sector recruit people who have mortgages etc and need a decent salary now.

This, or maybe OP could be a teacher and manage 26 kids at once as well as all the prepping and marking which happens mostly in your own time because almost all hours at school you are timetabled to teach students. A huge shortage so plenty of room for you OP.

If you want to cut cost why not slash the lazy lords in the House of Lords, pay? They get a lot just for attendance and free lunches with wine whilst some kids in schools go hungry. The house of Lords makes me sick.

Surprisedcupcake - You have made some real sweeping generalisations about what is offered in the private sector. Only 13% of private sector employers offer these types of benefits. Most Civil Servants, have flexible working, WFH policies, early retirement in certain services, where they then reapply and go back in the same service or work elsewhere!. I often see a neighbour who works for the Department of Education sunning themselves in the front garden with a glass of wine when she is on a little break!!!!. Another that works for the housing association spends his days on the Xbox as generally it is harder to get rid of non performers. Now they are talking about moving to 4days week for same pay😳. Not sure whether this link will help. I agree with you OP. According to figures from HM Treasury, in 2021 the UK net deficit stood at £3.8tn, of which more than £2.6tn was due to net public sector pension liability, having grown from £1tn in 2011 to Sept 2024. The golden pension fund will have to be funded in its current state by Taxpayers of future generations because there is less money going in than is being taken out. I agree put Public sector salaries up but reduce the tax payer contributions of 23%.I on this occasion want it ruining for others as this deficit is carried by the taxpayers and only about 1% of the country is in the high end tax bracket. It may stop my council tax going up hideously again, when rural dwellers get very little services, have to drive cars as there is no alternative and the last time an ambulance or police personnel was seen was I am guessing back in the 70s. Monwmum I have totally got your point 👍

www.taxpayersalliance.com/mandarin_millionaires_civil_service_pension_pots_2023#:~:text=The%20average%20pension%20upon%20retirement,lump%20sum%20was%20%C2%A3131%2C500.

I'm completely with you OP. Having working in private industry most of my career, the stint in the public sector I did was by far my most lucrative and the small pension I have from it will be much higher than even the couple of years ones from private industry.

Everyone knows the public sector have been on pay freezes and then 1 percent.

@caringcarer everyone except @Mownmum it would seem

The only pensioners that have lost winter fuel payments are the ones that don’t need it,

My disgruntled friend once said about NHS staff 'my taxes pay their bloody wages'. By that logic, as an NHS employee, I pay my own wages.

I'm a retired public sector worker, I still pay taxes and I won't get the winter fuel payment.

Twat

I don't think I am more "lucky" that my employer pays money into my pension rather than giving me a better salary. I would rather be given the choice.