DWP review – Pensions problem needs addressing
Sir, – The Department of Work and Pensions’ review closed on December 31. Their final decision about a range of measures to reduce future costs to the taxpayer is expected in May. While it is appreciated that the Triple Lock for State Pensions comes at a significant cost, I wonder how much time and effort has been spent addressing the Public Sector problem?
Significantly more savings could be made if NEW employees in the Public Sector were not given the un-affordably generous pension promises that the Private Sector have all but abolished – platinum plated public pensions, many of which are unfunded and have eye watering future costs
Why should this “Pensions Apartheid” continue?
A nurse aged 25 on £30,000 a year in the NHS will end up with a final salary pension of five TIMES that of a nurse the same age on the same salary in the private sector.
The cost of providing final salary pensions in the private sector went up from 23% of annual salary in 2009 to 51 per cent (YES 51% ) of annual salary in 2016.( figures from KPMG’s 2016 Pensions Review ). That is why there are almost no final salary pension schemes in the private sector!
One informed report advised that the reason for slow and limited changes to public sector pensions is because of the strong trade unions. Regardless of this, the economic case for change is compelling but successive governments have not had sufficient resolve to address this urgent and important matter. Of course, it is easier to take away modest pensions from existing retirees as pensioners cannot go on strike! – Yours, etc.,
Eric H Brown
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