This can't go on

No-one objects if public sector pensioners such as James Brown (Letters, 26 May) receive 40/80 of final salary as pension for 40 years' contributions at 14 per cent; at these levels, his pension has probably been funded over his working life. But the problems now with public sector pensions are huge and well-documented.

Clearly, benefits accrued to date by both pensioners and employees who still benefit from final-salary pensions have to be honoured. But no-one has a job for life; employment contracts in both public and private sectors need to be changed to reflect the fact such pensions are unsustainable, without a longer working life or greatly reduced benefits.

There is no particular logic in linking pensions to final salary; a working life of 40 or even 45 years cannot reasonably pay for a further 30 years of generous pension; such schemes' contributions benefit from tax-relief, but there is still a 160 billion shortfall in private sector pension liabilities; they lead to the astronomically high pensions we see in RBS and elsewhere, and excessive levels even in the upper echelons of the public sector – all payable by future generations.

On retirement at 65, we pay no NIC or pension contributions, we benefit from a higher tax-free personal allowance, we have no commuting costs, and we benefit from untaxed free travel, winter fuel allowance, etc, irrespective of income. The effect of this could well be that net income is maintained at, or might even exceed, the net income in employment.

JOHN BIRKETT

Horseleys Park

St Andrews, Fife

James Brown misses the point about public sector pensions – and the present economic crisis should say it all.

Many, like myself, who have done everything the government asked since starting work at 15 – paid the big stamp (still an option for women when I started work) and been in four company pension schemes, paying about 5 per cent-plus along with employers' contributions for nearly 40 years – are not in our wildest dreams going to accumulate pension benefits of half their salary. And my salary does not entitle me to pay tax at the higher rate!

Pensions are sliding at an alarming rate, and many whose pensions have dwindled have delayed taking their private/work pensions in the hope the markets will recover. No bail-out for them.

CATRIONA C CLARK

Hawthorn Drive

Banknock, Stirlingshire