As those of you who have not been walking around with a paper bag over your head, for the last few months will know today many of those working in the UK’s public sector are on strike over plans to make them work longer and pay more into their pensions. Today’s Independent carries an interesting article regarding the large pensions which Members of Parliament (MPS) can expect compared to other public sector workers such as those employed in the civil service. The government is proposing that MPS contribute more to their pensions and (as with the public sectore more generally) that they move to pensions based on career average earnings rather than on a final salary pension scheme. However, as the Independent points out even with the proposed changes MPS will still end up with considerably larger pension pots than other public servants due to the fact that MPS (unlike civil servants) earn the same salary.
Another thought to throw into the debate. Was it the public sector which caused the current financial crisis being faced by us all or was it, perhaps down to irresponsible lending by many (though not all) financial institutions?
For the Independ’s piece please visit http://www.independent.co.uk/news/uk/politics/publicsector-pensions-spot-the-odd-one-out-2304603.html