Pension reality needed in longevity age

Published on Tuesday 29 November 2011 00:00

Following the coalition’s hypocrisy in maintaining MPs’ own ultra-generous scheme albeit with increased contributions, and thereby losing its moral authority; its incompetent PR, despite David Cameron’s background, and the unions’ insistence in taking “non- industrial inaction” (hardly the behaviour of “professions” as many claim they are) on low minority votes, Brian Monteith injects several notes of realism into the pensions debate (Perspective, 28 November).

But even he implies that reform is necessary because of the current deficit and rising debt, mirroring those who justify the strike by saying “the financial crisis was not of our making and we did not contribute to it”, and who also argue in relation to the NHS scheme that “it was future-proofed three years ago so that contributions match benefits”.

Reform is needed because of the impending demographic crisis (to which, ironically and quite rightly, the NHS and many others have indeed contributed); and I doubt if any actuary could reasonably future-proof the pensions of 25-year-olds who will quite probably live another 70 years.

If current contributions merely equal current benefits, that is irrelevant and no different from a giant Ponzi scheme.

What all pension schemes need (both private and public – this is not a them-and-us dispute) is for “future benefits” to be matched by “current contributions ring-fenced from predatory governments or bankrupt companies in a separate fund”, otherwise we will continue to load on to future generations the cost of our own pensions.

That effectively means replacing all salary-based schemes (whether final or revalued lifetime average) with money-purchase schemes, while honouring accrued benefits to date.

John Birkett

Horseleys Park

St Andrews

As student leaders and activists from across Scotland, we pledge our full support to the trade union movement’s campaign against austerity, and the mass walkouts over pensions.

Tomorrow our teachers and lecturers will be striking alongside millions of other workers in the country’s public sector.

NUS Scotland, alongside student anti-cuts groups, will be organising and encouraging students to join them on picket lines and at mass rallies across the length and breadth of Scotland.

The coalition’s austerity programme is leaving a whole generation without a future – their education will be ransacked and they will be unable to find a job amid mass youth unemployment.

And now our generation will be asked to pay higher pension contributions, work longer and then survive on a miserable pension at the end of it.

This may be about pensions, but it will be the youngest generations who suffer the worst consequences.

Students, claimants, pensioners and workers in both the private and public sectors did not cause the economic crisis, yet are being made to pay for the follies of the banks and decades of laissez-faire economics.

We are confident that next week’s day of action for pension justice can bring together millions of people to resist these attacks on the living standards of ordinary people. We stand in full solidarity with our lecturers, teachers, and all other public sector workers taking a stand.

Robin Parker

NUS Scotland

Plus 36 students’ association presidents and student activists

Drummond Street

Edinburgh

In 1962, when I began work as a local government clerk, I was forced to join the superannuation scheme. Against my will, at that time, a large chunk of my salary was deducted from my salary every month.

In return for this I was promised a pension of one-80th of my salary for each year I worked. Today, of course, I am very grateful for that pension, the terms of which were identical to the scheme enjoyed by public sector workers today.

However, when I joined the scheme, it was based on demographics that suggested that, on average, people would work for 45 years and live to draw their pension for a further nine years in the case of men and 13 years in the case of women.

It beggars belief that today’s public servants are so innumerate that they cannot understand that a pension formula based on nine to 13 years of retirement simply cannot work now that life expectancy has increased so dramatically.

Or do they think that their pensions are a government hand-out rather than something that they have to fund themselves during their working lives?

James D Brown

Burnside Road

Elgin

Comments

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samcoldstream

Wednesday, November 30, 2011 at 01:45 PM

Pending Moderation

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samcoldstream

Tuesday, November 29, 2011 at 12:41 PM

Unfortunately for the government, the days of working people rolling over and accepting crumbs from the table are long gone. The Tory-led Coalition must be dreading the mass turnout tomorrow, especially any reference to a "Winter of Discontent"! I wonder which newspaper will be the first to paraphrase Shakespeare? Recent history has proved conclusively that only talks solve industrial disputes, and whether it likes it or not, the Coalition will have to move its position. Its called negotiation.

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sjhill

Tuesday, November 29, 2011 at 10:26 AM

I'm terribly sorry but I will not support your strikes, as I am too busy working to provide for my pension and yours via the taxes I pay. And I'm struggling to make ends meet as it is. Sincerely, The Private Sector.

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Kobi

Tuesday, November 29, 2011 at 10:03 AM

So the NUS aka the student wing of the Labour Party is supporting the strikes. That is hardly news. This would be the same NUS that during the regime of BlairBrown took the position "You want to shaft students, Labour party leaders? Well we want a career in the Labour Party, so how far over do you want us to bend?" What these class warriors fail to realise is that a far far bigger worry for young people than gold plated pensions for the minority, is that Labour and its public sector allies have spent all the money, and that the future for these young people, for their kids and for their grand-kids, has all been p*ssed away by mad socialists intent on their crazy schemes.

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