Why is the Government so concerned about Public Sector pensions? The truth is because you may not realise that there is no such thing as a Public Sector Pensions Scheme!
Really - yes.
Because a long time ago the Government (not this one) decided that they would pay Civil Servants (Policemen, @Health workers, Teachers etc.) from the Treasury (yes out taxes). They pay a Pension contribution but basically it is a Tax and goes to the Treasury, not like every body else into a Pension Scheme (a pot that is invested like a savings scheme) and this includes Local Government workers who DO have a Pensions scheme which incidentally is in Surplus at the moment and can meet all its pensioners needs for the next few years.
What the Government thought was that all the Civil Servants would be paying in their contributions and this would exceed what they had to pay out in pensions. It did but now there are i) more pensioners than those paying in, and ii) thanks to Labour who have doubled the number of Public servants, even more pensioners in the future who they've got to pay.
So basically it wasn't even Gordon Brown's fault. Just a gamble a long time ago that has gone wrong.
Solution? Like the Bank Bailout - the Government should immediately setup a REAL pension fund for Public Servants - a one off sacrifice, and then keep all contributions going into it and all pensions paid out of it. Then get the Trustees to manage it.
Of course they will have to ensure that the Bankers (who will look after the money) don't rip us off again but hey do we trust Politicians?
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