How public-sector pension schemes are funded | Letters
Key points
- Prof Stephen Caddickās letter (26 May) on public sector defined-benefit (DB) pension schemes requires a response.
- There are five large āunfundedā schemes: NHS, teachers, civil servants, police and army.
- It is true that employers, and thus ultimately taxpayers, put in a fairly high employer contribution.
- But without a decent pension scheme, such sectors are likely to require higher levels of pay to recruit and retain staff, the cost of which would also fall on taxpayers.
- The Ā£1tn in liabilities for public DB schemes that Prof Caddick mentions is misleading, as is usually the case with any assessment of pension liabilities outside the private sector.
Quick Summary
Prof Stephen Caddickās letter (26 May) on public sector defined-benefit (DB) pension schemes requires a response. There are five large āunfundedā schemes: NHS, teachers, civil
Why It Matters
This development is important because it may impact public opinion, policy decisions, and future developments related to How public-sector pension schemes are funded | Letters.
Key Takeaways
- Prof Stephen Caddickās letter (26 May) on public sector defined-benefit (DB) pension schemes requires a response.
- There are five large āunfundedā schemes: NHS, teachers, civil servants, police and army.
- It is true that employers, and thus ultimately taxpayers, put in a fairly high employer contribution.
- But without a decent pension scheme, such sectors are likely to require higher levels of pay to recruit and retain staff, the cost of which would also fall on taxpayers.
- The Ā£1tn in liabilities for public DB schemes that Prof Caddick mentions is misleading, as is usually the case with any assessment of pension liabilities outside the private sector.
š Source: The Guardian
The BriefWire