£2billion For Scotch Public Sector Pensions.......nice

Discussion in 'Current Affairs, News and Analysis' started by Northern_Biff, Feb 10, 2011.

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  1. £2 billion annual cost of Scottish public sector pensions - Telegraph

    Scottish ministers have been urged to consider a cap on public sector pension contributions after auditors found the cost to taxpayers has spiralled to more than £2 billion per year.

    An Audit Scotland investigation into the six main state pension schemes north of the Border found the amount paid in by the public purse has increased by a fifth over the last five years.

    Taxpayers now pay in a total of £2.2 billion, almost three times as much as is being contributed by public sector workers themselves, and the total projected payout in pensions now stands at £69 billion.


    Makes interesting reading. Think of all the porridge you could buy with that! I particularly liked the bit about it being almost as much as what is contributed.
    Dont worry though, you carry on with your subsidised Uni places and prescriptions, I am sure the English taxpayer will pick up the tab.
     
  2. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    Firstly, SCOTCH is a drink, not a nationality.

    Secondly, public sector pensions are nothing to write home about in terms of value to the recipient. Most public sector pensioners receive roughly £8K a year.

    Thirdly, if you are serving, or have served, your pension is classed as "a public sector pension".
     
  3. Thanks for the education mate. I really didnt want to offend any of our skirted brothers, honest I didn't.

    If you care to read the article, maybe you can tell me how come a nation of only 5 million, manage to run up a pension demand of 2billion per year. FFS, I know your glorious Gordon gave a lot of scotches a job on the public teat, but everybody?
     
  4. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    Not my "glorious Gordon". If you refer to my previous posts inrelation to the formers CHX and PM, you'll find that I referred to him as "Groovy Gordy" - an appellation so apposite as to be illiterate.

    WRT to pensions thing, you'll need to speak to a professional.
     
  5. OldSnowy

    OldSnowy LE Moderator Book Reviewer

    Scotchman is a perfectly cromulent word. It has been used in English for centuries, and has only relatively recently become limited to referring to whisky. If you don't like it, may I suggest that you utilise another language?

    As for these pensions - sorry, but what do you expect? We (in effect all of us, as it is a Parliamentary Democracy) elected a Government led by Scots on the make, not once but three times - we should have known that this would happen.
     
  6. Vote for English Indepence then.

    Go on, dont be afraid.
     
  7. Sixty

    Sixty LE Moderator Book Reviewer
    1. ARRSE Cyclists and Triathletes

    Well, assuming the notional 8k per annum mentioned above:

    Mr Smith, a public servant, retires at 60. He could live anything up to 40 years and above but let's for the sake of argument assume he lives for another 20 years.

    20 * 8000 = £160000.

    Now; let's do the same for a notional 1000 public servants.

    £160,000,000

    That's 160 million pounds. Do the same for 10000 public servants and that's 62.5% of a billion and continue from there.

    There are far more than 10000 public servants, all these are linked to RPI (rather than CPI I believe) and no-one knows who long each of these people will live but the pension has to be paid until death.
     
  8. To the OP

    Drop in the ocean when you consider that Public service pensions provide retirement incomes for millions of people in the UK. In total there are 12 million active, deferred or pensioner members and dependants of public service pension schemes. That is around one in five people in the UK. Each year schemes pay out billions of pounds to their pensioners – in 2008-09 payments were £32bn, about two-thirds of the cost of the basic State Pension.

    But hey dont let me give you a good chance to have a moan

    But remember,

    * Around one in five of all UK citizens has some entitlement to a public sector pension.
    * The schemes currently have 12 million members who are either making contributions, drawing pensions or have built up pension benefits.
    * Public sector pension schemes paid out £32 billion in 2008/09 - the equivalent of two-thirds of the cost of the basic state pension.
    * The cost of pensions for the five main public service schemes, namely those for local government workers, the NHS, teachers, the civil service and the armed forces, has soared by nearly a third in the past decade.
    * The gap between contributions and the cost of pensions being paid out is set to more than double to £9 billion in the next four years, according to the Office for Budget Responsibility.
    * The cost of paying pensions for members of unfunded public sector schemes is set to reach 1.9% of GDP this financial year, and remain close to this level for the next decade.
    * The average pension paid to a public sector worker is around £7,800 a year, with half of workers receiving less than £5,600 a year, while 10% get £1,000 or less.
    * Public sector workers are now expected to spend around 40% of their adult lives in retirement.
    * A female NHS worker who retired at 60 in 1956 was expected to live for a further 20 years, someone who retires at the same age now is expected to live for a further 32 years.
    * Around 85% of public sector workers have some form of employer-sponsored pension scheme, compared with just 35% of people in the private sector.
     
  9. So, you're assuming that of that £8k a year, Mr Smith contributed nothing?
     
  10. Hey - My pension has not gone up by a third in the last ten years.. mmmm .... military now much less in numbers than 10 years ago, so pension payouts not up by that then ..... Must be the extra civil servants Broon decided were a "must have" in order to run the country badly - no couldnt have been them..they cant be getting a pension already surely..ok I give up, where has the 30% increase in pension payments come from????
     
  11. OldSnowy

    OldSnowy LE Moderator Book Reviewer

    Well, in reality, yes; he contributed nothing. I know that public sector pay is abated to allow for pension contribution, but given that there is very little within the public sector that actually contributes to wealth generation (Ok, some bits may indirectly, such as Postmen, providing a service that is necessay to wealth generation) then no, he surely contributed nary a penny. The pension abatement merely transferred the costs from years X-Y (when the abatement took place, i.e. when he was working) to years A-B (when he is drawing his pension. Both periods are net drains on public finances, and there is no getting around this.

    And I should know - I've been sucking at the Public Teat pretty much non-stop since signing up as a Junior :)
     

  12. So those pension deductions on my pay statement must be the pay office embezzling my salary then?
     
  13. And those are the wages you get from the public purse, so you are sucking at the Public Teat too without contributing to the growth of the wealth generation of the country :)
     
  14. Indeed, like the rest of the public sector - in this I include servicemen, emergency crews, doctors, nurses and the bloke who sweeps the streets - I contribute nothing directly to wealth generation. I also know that if any of the above were removed from the equation, the consequences would be far wider than impact on GDP.

    And as the bankers recently showed, wealth generation can swing both ways...
     
  15. The pensioners in question are Scotchmen. They'll all be dead of heart disease soon after retiring. Simples.