Can the public sector pension problem be solved?
The problem with the public sector pension issue is that various unions in the UK are very strong in this particular area, and have shown only recently that they are willing to back up support for their members with strike action. In many ways the UK government, and local authorities, have a loaded gun to their heads because ultimately if they decide to push through pension changes the unions will almost certainly cause significant disruption across the country.
Until we see a government in place which is willing to make these difficult decisions and ultimately take on the unions it seems as though UK taxpayers will again be asked to bail out the problem of pension fund payments in the public sector. However, the situation is even more galling because so many UK workers are struggling to survive let alone put money aside for the pension scheme, and the vast majority of employers have now moved to money purchase schemes.
The UK government has been very quiet with regards to the problem of pension fund deficits in the public sector although this is an issue which is sure to crop up as we approach the next general election. While the Conservative party, if it gains power, has promised to take on the unions and the public sector workforce, whether it will actually carry out his threat remains to be seen.
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