Lib-Dem claims of £60bn local government pension deficit is
‘removed from financial reality’, says Unite
15th January 2010
Claims that the local authority pension scheme is running a £60
billion deficit has been dismissed as being ‘far removed from
financial reality’ by Unite, the largest union in the country.
Unite’s assistant general secretary for the public sector, Gail
Cartmail, said the claims by the Liberal Democrats that the pension
deficit for local councils in England and Wales could hit £60bn
this year was “was well wide of the mark”.
Gail Cartmail said: “The Liberal Democrats are playing into the
hands of the right-wing myth-makers and commentators peddling the
line that hard-working public servants are living in the lap of
luxury once they have retired.
Gail Cartmail said that three keys facts need to be borne in
mind as the public sector pension debate hots up in the run-up to
the General Election.
These are:
- that the current level of public sector pension provision is
self-funding i.e. the money needed is covered by the contributions
made by employers and employees. This scheme is not asking for
bail-outs from the government.
- the cost of providing a public sector pension, according to a
report by the Pension Policy Institute, is the same as the cost of
a typical final salary scheme in the private sector.
- the government has negotiated with the trade unions and
agreement has been reached to raise the retirement age for new
entrants for public sector schemes; to increase average member
contributions; and to cap the increase in government costs.
Last year, the TUC said in a briefing that the majority of
public sector pensioners receive a pension of less than £5,000 a
year and that half the women on NHS pensions receive less than
£3,500 annually.
ENDS
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