Quote:
Originally Posted by gynn
The teachers and other public servants have every right to be angry, because they are being made to pay for the failings of national politicians of both parties who took short term gains at the expense of long term planning.
The reason given for the changes to the scheme are that people are living longer, and there isn't the money in the funds to pay them. But that information was available back in the 1980's, so why did Conservative Chancellors Lawson and Lamont allow for reductions in the employer contributions to pension funds to make them not fully funded? Answer: short termism.
The information was also known to Labour Chancellor Gordon Brown in the 1990s so why did he remove the tax breaks enjoyed by ALL pension funds, which again led them to suffer shortfalls? Answer: short termism.
The effect of these policies over many decades is what we are seeing today, with Hyndburn Council's pension fund, for example, in deficit by 50 million pounds, and for every one pound that it pays to its employees, the Council has to put 28 pence into the Pension Fund.
It is a situation that can't be sustained, but it is one that could and should have been foreseen decades ago, and with proper planning would not have arisen.
So the teachers and public servants have every right to be angry.
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Whilst that is perfectly true, in my view the shortfalls came about,cos pension funds were taking "Pension Holidays" fer 1 yr or more,as far back as the 80s, when as you say this information was known! the reason given,was a massive surplus in the funds! the ordinary worker did NOT get a break,but carried on paying his dues, so in my view those that milked the pension system should be made to make up the shortfall, They Caused It!
why on earth should people who have always paid their dues suffer?