Robin Hood in Reverse (2)

Here's a companion piece - Robin Hood in Reverse (2) - to my original post about why final salary pension schemes are such a rotten deal for the low paid.

The difference in treatment - between low paid and well paid groups of workers - is even more striking when it comes to early retirement and voluntary severance packages.

The reality is that the lower paid groups - such as carers, cooks, and classroom assistants - never don't qualify for such special treatment.

Oh no - they don't get added years and huge sums of money (on top of already high salaries) - to boost their pension pots!

Instead the lower paid groups get left out in the cold - and the system that allows this to happen is propped up by the unions - would you believe.

"Robin Hood in Reverse (2)"

"An interested reader has been in touch about the 'Robin Hood in Reverse' post - dated 22 June 2010.

While agreeing with the contents of the article - the reader goes on to ask about the many council officials who are allowed to leave the service - with a generous added years boost to their pension packages.

How come this only ever seems to apply to middle ranking and senior council officials - why do the lower paid groups never seem to get the benefit of added years? - the reader asks.

Good question.

I bet if you asked a Freedom of Information (FOI) question or three of Scotland's councils - along the following lines - you'd get a very interesting reply:

1 How many council staff have been allowed to leave in the 'interests of the efficiency of the service' in the past five years?

2 How much did this actually cost - in terms of added years and boosting people's pension benefits?

3 Of those who received enhanced pension benefits, how many earned more than £20,000 per year - and how many less than £20,000 per year?

Because the truth is that hardly any low paid workers are amongst those allowed to leave their council's service - on these generous, enhanced terms.

Such benefits are reserved for the higher paid groups - who already do much better than their low paid colleagues - from the final salary pension scheme.

Yet another illustration of how the local government pension scheme is a fine example of Robin Hood in Reverse - because the lower paid end up subsidising the much higher paid."