TUC hits out at public sector pension ‘myths’ - Pensions - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

TUC hits out at public sector pension ‘myths’

TUC hits out at public sector pension ‘myths’

Category: Pensions

Updated: 30/07/2009
First Published: 30/07/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Claims made by business groups and politicians that public sector pensions are unaffordable and out of control have been dubbed 'myths' and 'scaremongering' by the Trade Union Congress (TUC).

The body says that critics of public sector pensions are guilty of misrepresenting figures, presenting a bill that is to be paid over a concerted period as having to be paid in one go.

The truth, it claims, is that the real cost on the economy is around 1.5 per cent of GDP, which will slowly rise to two per cent in the next 20 years before falling slightly.

The group has also argued that the cost of public sector pensions is less than the state pension and long term care, which is likely to increase as the average age of the UK continues to grow.

TUC general secretary, Brendan Barber, said: "Many private sector employers have cut or abandoned decent pensions for their staff. The result is that many people at work today will face a big drop in their living standards when they retire.

"Now employer groups and opposition politicians are saying that public sector pensions should be levelled down so that Britain's nurses, teachers and other vital public sector staff should face the same hardship when they retire."

The perception that fat-cat pensions are prevalent in the sector is a myth, the TUC insists, with top public servants on the same pension scheme as other staff, and the majority of public sector pensioners receiving a modest sum of less than £5,000 a year

"Each day seems to bring new dodgy statistics and scaremongering about the cost of public sector pensions, along with bogus claims that there are easy public spending cuts to be had," Mr. Barber added.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Grandparents missing out on pension protection

Grandparents who give up work to take care of their grandchildren could be missing out on valuable state pension rights. So, if you're a grandparent taking care of a little one, make sure you’re building up all of the pension that you deserve.

Setting goals could boost your pension pot by £30K

Setting goals can be the key to success in many areas of life, helping motivate you to achieve anything from career progression to building up that house deposit - and if you have goals set for retirement, you could boost your pension by £30,000.

Pretend to be a time traveller day: Are you ready?

Today marks international ‘pretend to be a time traveller day’, a perfect occasion to look at what our lives might look like in 50 years’ time. Are you prepared for 2066?
 
Close