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.

I’m really confused by professional people saying that they only have 120k in their dc pension pot at retirement age. I am a teacher and have 30 years in the pension fund so have a so -called gold-plated pension but I pay 1000s a year into that fund (maybe 6k a year).

In my early career I was stupidly advised to opt out of the fund and take a private dc pension instead which I did for 3 years. Decades later the compound interest means I have a 60k dc pot even though I only paid in for 3 years. Surely if I’d paid in for 30 years I would have at least 600k. Am I just being thick or are some people only making tiny monthly pension payments?
By the way, I had to opt out of the teachers’ fund for a few years when I took mat leave( 3 months max mostly on tiny pay back in those days) so my pension could be better than it is. I am nearly 60 and still going strong but teaching is an exhausting job so not sure 67 is a realistic retirement age.
As an example of the perks in the public sector, as recognition for my 30 years in the same local authority a few years ago I was awarded….. a BADGE! A fucking badge!

https://iea.org.uk/the-hidden-perks-enjoyed-by-the-public-sector/#:~:text=Final%20salary%2C%20defined%2Dbenefit%20pension,the%20private%20sector%20(8%25).

To be blunt, you are ill informed.

Ritasueandbobtoo9, I hope you're not a nurse or that's me gone !!!! x

sorry if this point has been made but I’ve not read everything.

What people (OP) needs to realise is that current contributions are not paying for current workers future pensions. They are paying for the high cost pensions of current pensioners while trying to ensure the funds will be enough for future retirees.

Employers contributions rise every few years while benefits reduce. I’ve worked public sector for 24 years (NHS and education). When I first started drs costs were 7% (it might even have been 4% and rose shortly after I started). The increase in costs it not because our pension value has increased.

In what way?

And apparently forgotten in all this is that public sector workers are also paying tax and national insurance

https://en.wikipedia.org/wiki/Institute_of_Economic_Affairs

We haven't had it removed, but like most other benefits it's now means tested

No they're not though! Maybe Senior Civil Service are doing OK but I had 43 years contributions and could never live on my pension and will never achieve a full state pension because we were automatically opted out so receive less that non Civil Service.

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?

No. What is that now, the third time that you've made up something and attempted to attribute it to me when it is nothing even vaguely resembling what I've said?

I said your suggestion to increase public sector salaries significantly immediately and look at changing pensions subsequently at a later date was ridiculous because there is no way to fund that. Both obviously need to happen simultaneously but, as I pointed out, before it is possible to raise salaries significantly in both the public and private sector - which desperately needs to happen after 15 years of stagnation - significant reforms are required to our economic and tax models to increase productivity otherwise the payrises would not raise living standards and would instead simply drive further inflation cancelling them out.

I work for the public sector, and 15% of my monthly wage goes towards my pension, so I dont know where you get your information from. My pension isnt worth as much s you probally think it is. Also by the way, I havent had a pay riase for 5 years, my wages have been frozen but my pension contributions have gone up. I had a 5.5 % pay raise this months for the forst time in about 5 years

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

@Alexandra2001 did you mean to quote someone else? Your comments are completely nonsensical as a response to mine. You think I support the Tories?! 🤣🤦🏻‍♀️

Earlier this month I completed 20 years of continuous service in the public sector and didn’t even get a certificate printed off to commemorate it! When my Dad completed 20 years service in the private sector he had a Swiss watch with an engraving, personalised bottle of champagne and a £1000 bonus back in 1992 and a framed photo of him with a Director.

I was too late for a final salary pension, and in the last decade my salary has lost 30% of its value because of pay freezes and below inflation pay rises.

I have also seen endless restructuring and job losses that means that we are all working far harder as there simply are not enough staff for the work we do!

Colleagues are leaving in droves to the private sector, for job security and better pay! Although they may receive a slightly smaller percentage of employer’s pension contributions, it’s still more money in their pension pot than a higher percentage of employers contributions on a smaller salary.

I also wonder why people thing that tax payers don’t pay for private sector pensions, obviously we do as we buy their products or services… the money for all wages and pensions come from the public… it’s just that in the public sector we put our heart and souls into the public good rather than to pay for shareholders to buy apartments in Monaco to avoid paying UK tax!

The government is going to add 6000 teacher by charging VAT on school fees. I’m not complaining about that. Where do they expect to get 6000 teachers from when they are missing target recruitment by 80% in shortage subject areas in secondary schools. Perhaps more pay might increase recruitment?

If you take away my pension then you’ll need to pay me the same as the private sector, so I’ll take that 40K+ pay rise thanks.

seriously, nothing stopping you getting a job in the public sector if you want is there? No need to be jealous …

We pay a massive percentage into them, they aren't just a free good

Yes.... And with the shitty new IHT pension hit for DC pensions, your £5k will be fine .. but if you are retiring at 55 and in good health etc then that's worth a DC pot of £110k (approx)... Which gets added to estate for inheritance tax which severely reduces value that DC peeps have saved whilst leaving team DB sitting pretty (as usual)

Im the same - pay 11% of my wages into pension. Right now I’ve opted out as maternity leave pay is awful in the public sector and I get the 11% in wages. So the only way to cut my pension to save money for the tax payers would be to reduce my already low wages so I couldn’t pay as much in. There would be riots 😂

Also if I die before pension my husband will get a hundred thousand. But I’ve already paid more than that into my pension so the tax payers would get a right to take my pension pot. My parents work in the private sector and I’ll inherit the value of their pension,

Public sector employees are often going above and beyond to serve the taxpayer, usually at the employees own expense. There is often no overtime payment but ofc the overtime still happens and no fat bonuses or other employer perks!

I'm a civil servant. Our pensions are not that great.
Until this year I hadn't had a decent pay rose and even then, I still haven't received it yet. Its also only backdated to Jul not April.
I work bloody hard for the pittance I get. Unfortunately too old to go into private sector plus actually I do like my job.
If you are so concerned, and I note you don't tell us where you work.....if you do work at all, get a job as a CS and then tell us again what fantastic pensions we get.

You do understand that most public sector pay is wholly funded by taxes?
I am not saying that the pension benefits should be cut.
A fair system would be for everyone to pay the same proportion in pension contributions and get the same company contributions with the government providing a career average State Pension.
It would mean that no-one has their own pension pots unless of course they want to save extra.
This would also allow Rachel Reeves to invest the funds whichever way she sees fit.
There is a problem though that a large number of schemes use current contributions to fund current pensioners and are not actually building up pots (NHS). This pyramid scheme will eventually need to be cross subsidised from other taxes.

People have explained that Local Government Scheme is fully funded from employee / employer contributions and has been for many years.

You say that maternity leave pay is awful in the public sector. I think you will find that it’s usually better than the private sector. I only had statutory maternity pay in my private sector role whilst my two friends in the public sector who were on mat leave at the same as me had enhanced pay. It’s not just mat pay, sick pay is another issue. My friend who works in the public sector was shocked at my sick pay entitlement - one month discretionary so my employer can decide whether to pay it or not as it’s non-contractual. Plenty of people in the private sector only get SSP.

Yes SMP, SSP, 22 days holiday, 5% employer pension contributions - which has just gone up to 7% after 5 years service. £30,500 salary for a central London job. Regular overtime without pay That's what I get.
Charity sector. It's crap.