Fairness and Pensions



Everyone keeps banging on about fairness these days - so I thought I'd propose an idea of my own on pensions.

As anyone with an ounce of common sense knows - final salary pensions schemes are a racket - designed to favour the better off groups of workers in the public sector.

The more you earn in a final salary pension scheme - the bigger the racket - because you get much more out than you pay in - and the mugs who pay the bill are your lower paid colleagues and the taxpayer.

So my idea is this - take all of the money spent on employers' pensions contributions in the public sector - and use it to increase the basic state pension for everyone.

At a stroke you would give a huge boost to the lower paid - and those who rely on only the state pension in retirement.

Instead of having to get by on £100 a week - people would get maybe two or three times that amount - maybe even more.

Who knows what the final figure might be - if the giant sum of public money spent on employers' pensions contributions - were to be used in a different way?

Not only that it would also end the divide between workers in the private and public sectors - with public money being used to benefit everyone's pension - not just those in one sector of the economy.

Highly paid workers would lose out - relatively speaking - no longer would managers on big final salaries get huge annual pensions - and enormous tax free lump sums.

Instead, they'd just be like everyone else - except still a lot better paid of course.

And in a position to use their much higher salaries to look after themselves - of course - while remaining entitiled to a much improved state pension when they finally retired.

But they wouldn't win twice over - first with their higher salaries and then with their much better pension arrangements.

The public sector workforce could keep its 'employee pension contributions' - to save or spend as they like - and the lower paid would be much better off - generally speaking.

The trade unions and the Labour party go on defending the present system - because they are the voices of the establishment - the champions of vested interests.

Which explains why they have nothing to contribute to the debate - except saying NO.

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