As expected the local government pension scheme has come under attack by the government which is looking for ways to make us all pay for the mistakes committed by bankers. I am reproducing a statement issued by Heather Wakefield, Head of Unison Local Government sector there is also a more detailed entry o John Gray's blog which makes good and essential reading http://grayee.blogspot.com/2010/12/get-your-facts-right-about-local.html :
“Another week, another attack on the local government pension scheme. These so-called independent pensions consultants and government ministers should get their facts right before they resort to crude scare-mongering.“Eric Pickles is plain wrong. Less than 6% of council tax payments fund pensions. More than 50% is made up of employee contributions and investment returns.“The local government pension scheme is in good shape, and is a vital way of allowing mainly low paid workers to save for their retirement. A report out this year confirmed that the scheme could cover all its liabilities for the next twenty years, without a single penny more in contributions. What’s more, the scheme invests hundreds of billions in UK stocks and shares every year – a huge boost to our economy. “With pensions, its vital to take a long term view. It is totally misleading to take an assessment of the schemes liabilities now and make claims for the future that don’t stack-up. All investments have taken a knock thanks to the financial crisis, but given time they will recover.”
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