The injustice of Local Government Pensions.
Posted by: Don Atkinson on 15 March 2015
BBC Radio 4 – so it MUST be true – at17:00 today.
4.5 million workers and pensioners are part of Local Government Pension Schemes. The aggregated value of these pension funds is c.£180bn and their liabilities are c.£230bn ie they have a deficit of c.£50bn. 98% of all the schemes are in deficit.
The schemes are funded jointly by employees (past, present, future) and the LAs. Employees make fixed (%) contributions as do the LAs as part of the employment contract. The deficit is made up by the LAs, not the employees.
Funding by the LAs is derived from Local taxation plus the Central Government allocation. You, me and all the rate-payers and tax-payers are therefore subsidising these Local Government Pension Schemes whether we like it or not. In turn therefore, we are all subsidising 4.5milloin LA employees and pensioners. We are forced to pay, either by increased taxation or by a reduction in the services provided by central and local governments.
This is grossly unfair and unsustainable.
Which political party will put an end to this injustice? They will have my vote in May !
