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.

This. When I moved to public sector 10 years ago I took a pay cut but still out earned my husband. I haven’t had a pay increase that matches inflation since and my husband now earns 3x my fte salary.
i have been through 2 restructures with another on the horizon. Maternity pay is 12 weeks at 50% before moving to statutory.
The only thing keeping me there is the flexible working and the pension benefits.

Totally agree with this too!

I don't know what public sector pensions you are looking at, but I ended up with about £90 a week to add to my state pension after retiring from a local authority job. So sorry to be causing public funds to be depleted.

Is it? My first job was public sector and I got 1/25th

Pension is part of the overall pay packet when you take a job. What you're saying would either mean public sector workers would get a pay cut or the wage should rise to compensate to that of public sector. The second one wouldn't save money and the first one is insane given theyre already usually on less.
If you're oarticularly pressed about the few higher earners in the public sector, at least where I work empliyee contribution goes up as you go up the bands and the employer contribution goes down. Adds up to the same %.
I'm guessing you just don't like some people have a benefit you don't.

Bog off. If you want a better pension then join the public sector, it’s what’s kept me in for 22 years.

YABVVVVVVU.

Really?
I started a civil service role in 1986, earning around £4000 pa.
1/49 of that is £81 going into my pension pot on a career average.
Most people in my sector earn minimum wage. If we get a pay rise, an overall percentage is agreed with the government and most of it allocated to pay the minimum wage increase. Since 2010 I’ve never had more than 2% rise but most years it’s been zero or half a percent.

DH in the private sector has been receiving at least 7% AND an annual bonus together with private health care, a car allowance and a fully paid for Christmas meal and summer party

I don't know why you think public sector workers have been getting pay rises in line with inflation. This is absolutely not true.

1/80th for ours

I think you are missing the point everyuone else is making - public sector pensions are no longer operating the way you seem to think they are, and public sector pay broadly has dropped - I retired two months ago and at that point my pay was, in real terms, 25% LESS than it was in 2010. And just one other point, yes, it is true that pension contributions come from a pot that originates with tax payers. Where do you think private pension contributions come from? They are paid for by the same people, except that the way the money comes in is called something different. If you didn't have a public sector (and in many cases now, despite having a public sector) you would be paying for all those things the public sector provides anyway.

I work for a government org and everyone, I mean everyone, would earn more money for the same job in the private sector. I don't know where you are getting your facts about CSs earning more that people in the private sector?

Lots of salaries in the public sector are very low compared to the private sector for what the people do.
Pension is one of the things that that make people stay.

We need public sector as much as we need private sector.

Exactly - you would have needed to work 62.5 years to accrue an annual pension of half your salary (ignoring final salary vs CARE here for a second), where as PP on 1/49 would only need to work 24.5 years to have an annual pension of half her salary.

The old standard was 1/60, so after 40 years of service you would have a pension equal to two thirds of your salary. Or 1/80 but with a lump sum of 3/80 also accruing.

I need to recruit to my team and I’m embarrassed the salary is less than my teen gets at McDonald’s. The wage offered will have to increase in April as it’s below new min wage.

Many people would simply leave the public sector as the salaries are so low. Once DC leave I'm hoping to join public sector to increase my pension, I can't afford to.do that right now 🤷‍♀️

They were phased out because Gordon Brown stole a huge wodge from the pension companies making them unaffordable

Expect Reeves to have the same effect with this new wheeze to maximise risk by penio0sn funds by setting them targets to invest solely in UK infrastructure

I'm honestly not trying to bash the public sector I promise. Just thinking about ways our tax money is spent and this one stood out.... however, the responses on here have helped me see many more sides and realise that it would be a bad idea....hence why I love Mumsnet 😁

Private sector levels, a lot of us are barely over minimum wage, in fact my employer had to change my pensions, when my contributions actually took me below minimum wage .

Public sector pensions should be slashed, to our levels

I’ve worked for a Local Authority for a long time. 20 years ago there was a massive difference between my salary as a band H graduate professional and the lower bands.

Now most of the bands below me have been abolished due to the rises in the minimum wage. This, combined with pay freezes and below inflation increases, means that I now get only a small amount more than the admin staff, call centre staff and cleaners. Fucking depressing.
20 years in the job, never had a final salary pension. Long since abolished. You’re talking crap OP

Risk losing all those Labour voters … never

With a DB salary, you don't have a pension pot. 1/49 isn't your contribution, it's the pension you're owed at the end for that year of service. So for that single year, you would be paid 1/49th of it every single year of retirement.

It's not "taxpayers'" money
It's the workers' money they saved into their pension
I've never worked in the public service, but I would see any attempt to steal from their pension funds as yet another labour wheeze - Maxwell did it, Brown did it, Reeves is planning it

This would be a great idea if there was a surplus of people wanting to take public sector jobs but when labour wards run on 6 midwives instead of 14 and there just simply aren't enough nurses/teachers/police, is slashing pensions the way to promote retention.

We already have significant shortages, the wages are low, the hours are not family friendly, the pension is currently a little bit of a sweetener to keep people in the job especially the older workforce who would otherwise leave.

I suspect the pension will be eroded (there's already been big changes) but I don't think now when staffing is such an issue that people are dying daily because of it, is the time.

Public sector pensions are the one monetary benefit to the vast majority of public sector jobs. A lot of public sector roles are dangerous and hard, the ones most likely to get you killed and traumatised for the greater good. The wages are shit and there is no going to the boss to ask for a pay rise! I am the lowest paid by at least £20k out of all my peers. If it’s so great, come and join us- I bet you’ll soon realise you deserve the pension.

Why is it not your instinct to say that yours should match the public sector instead of draghing people down with you?