The one day strike is over, with its expected disruption, which hopefully will not re-occur, the overall impression was that the Government is not taking this matter seriously or responsibly. Cameron refers to a damp squib and his friend wants to shoot 2 million Public Sector workers, this is effectively what the Government is doing anyway with its changes although more like penal servitude in retirement.
That this was not as disruptive as it could have been was because those on strike were matched by more who wished to but put their duty first to provide emergency and essential services, many on strike had never taken action before in their lifetime.
Although they now be starting talks again, the basis appears unchanged and does not meet the long term needs, There is talk of generous terms and benefits and “gold plated” but pensions are nothing like; would you to pay £3,700 per year for 40 years to get a pension of £5,000 over possibly 20 years or less.
It is not even their money back, let alone inflation and with the changes proposed they will be lucky to get that; these changes are a taxation on the pension scheme, the NHS are already paying £2 to 4bn per year and this is set to double or treble over the next ten to fifteen years.
The State pension is as bad, NI contributions count for nothing and are treated as taxation revenue, there have already been successive rises and at 24% have probably reached the maximum possible, hence the transfer to increase PS income and the new Nest pension scheme next year.
All in work should be concerned and not be diverted by the envy red herring, having reduced State pensions down to below poverty level it is moving on to its next victims, be afraid, be very much afraid. It is their turn next year, when they will all face contributions for the new scheme of 4%, £8 per week for someone on a £200 wage, twice that or more for those on average wage.
In its accounts it treats State Pension as “benefit”, not a hard earned right, showing the attitude and the single tier pension proposals, not widely publicised, will abolish the State second pension and the SERPS NI rebate, leaving all on a pension below pension credit benefit level.
The Government should spend its energy getting everyone up to a gold plated standard and putting the hard earned savings into a Capital account to work and grow. It is getting the message to invest funds into infrastructure, but asking Private funds and the Chinese to find the money.
It currently collects and spends on pensions some £100bn per year from NI and PS contributions, if this money was spent on infrastructure and other National investments, even at a modest 4% return over the forty year work period it would grow into a £6,600 billion Fund yielding an annual income of £260bn and supporting individual pensions of £19,800pa for double the present over 65 population in today’s terms.
This is the advantage of the transfer to a funded scheme of both State and Public Sector Pensions and it could occur over the next ten years if the Government set its mind to it. The current pension liability would need to be met, but the State already owns more than adequate infrastructure assets in buildings, schools, hospitals, and even Bank Investments to raise the 4% return needed.
The advantages to all concerned would be tremendous:-
· Pensions levels would rise dramatically, by a factor 3 or 4
· The State would save amounts greater than the spending review cuts in benefit and future expenditure
· We would get the sorely needed infrastructure of Buildings, Transport, Energy and Social needs.
· The Economy would grow, Unemployment fall; the Autumn Statement doom and gloom disappear.
· New Life and Pride would be injected into the Nation to replace the moans, hardship and envy.
It just needs the Will and Vision to effect this change, and the People need to force its adoption.
Savings Annuities Public Sector NHS Teachers Police Local Government Hutton State Pensions
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