Pensions

Part of the debate – in the House of Commons at 9:18 pm on 31 January 2006.

Alert me about debates like this

Photo of John Penrose John Penrose Conservative, Weston-Super-Mare 9:18, 31 January 2006

Does the hon. Gentleman agree that there is something unexpected about the Government's apparent commitment to final salary schemes in the public sector, given that Lord Turner has said that the people who end up on high final salaries—typically the few most senior people in a final salary scheme—will have paid the smallest percentage of their lifetime earnings to achieve their final pension payment? That does not seem entirely fair and I am surprised that more Labour Members have not picked that up.

Annotations

bryan mcgrath
Posted on 1 Feb 2006 11:03 am (Report this annotation)

I agree that 'the few' high income stayers benefit most from final salary schemes. It has always been the case that the leavers paid for the stayers. I remember being shocked at the first transfer value I was offered after changing employer.

The high cost public sector pensions goes back to the Thatcher government's massaging of local government provision at the time of the poll tax. It is starting to come home to roost now