Is it fair for public sector workers to see their pensions reduced?
As the number of final salary pension schemes in the UK private sector continues to fall, with many believing that final salary schemes will have gone over the next decade, the government's announcement regarding public-sector final salary pension schemes has been well received. It seems that Gordon Brown has finally realised the immense cost of funding these public-sector final salary schemes from taxpayer's money and the ongoing liabilities these arrangements are building for the future.
However, various financial newspapers have today highlighted the fact that many people who work in the public sector do so on a wage which is less than the equivalent in the private sector but obviously there are better pension arrangements. If this is the case, and the figures seem to suggest this is correct, then ultimately a reduction in their pension arrangements could see them disadvantaged on two fronts. As the UK government begins its investigation into public-sector final salary pension schemes we should see more figures starting to appear in the press in the weeks and months to come.
Whatever the outcome of the UK government's investigation into the pension sector it seems almost inevitable, unless Gordon Brown were to rescind the various tax changes he introduced 10 years ago, that final salary pension schemes will soon become a thing of the past.
Share this..
Related stories
Is it really cheaper to shop online?
While the Internet has quickly become one of the main elements of everyday life around the world there are still many people who are not sure about buying products and services online. Even though there are a number of scare stories regarding security issues and fraud there is no doubt that the Internet is here to stay and does, if used correctly, offer a very interesting way to save substantial a...
Read MoreCollapse of Prudential deal helps sterling
Last night's spectacular collapse of the deal between Prudential and AIG has led to a rise in sterling across currency markets. This is purely and simply an unwinding of the potentially enormous position which Prudential would have had to take to pay for the US$35.5 billion acquisition. While this is obviously a welcome move for the UK currency, which has been under pressure for some time, it is l...
Read MoreCan the UK taxpayer actually benefit from the bank sector bailout?
The government has announced the creation of a new company managed by Sir Philip Hampton which will be in sole charge of the government's various bank shareholdings and direct banking operations. Not only is there a need to ensure the shareholdings in UK banks are administered on an arms length basis but there is also a need to insure that taxpayers stand as good a chance as possible of receiving...
Read MoreUK petrol prices could rise 15p a litre in 2010
The Petrol Retailers Association has set the cat amongst the pigeons with a suggestion that UK petrol could rise by up to 15p a litre purely and simply because of tax changes and a continuing upward trend in the price of oil. Aside from the fact that the VAT has now returned back to 17.5% there is further speculation we could see an increase to 20% after the election. The government is also set to...
Read MoreBuy To Let Market Starts To Shine Again
Even though it seems unlikely that any sector would benefit from the ongoing financial difficulties associated with the property market there are signs that Buy To Let is back on the agenda again. The Royal Institution of Chartered Surveyors has announced that 23% of surveyors have reported increased yields on properties in the first quarter of 2008.
As more and more people are for...