Each household will soon pay more than £ 400 a year, the pensions of public funding

>> Friday, October 8, 2010



The cost of public sector pensions with nearly a third in the last decade.

In 2015, the Treasury pays more than 10.3 billion pounds a year for retired teachers, nurses and officials. The total cost is over £ 32000000000, but the government let the rest of the contributions made by current workers in the public sector.

But the gap between money raised and payments are growing rapidly.

The total cost of pensions available to all public sector workers is now almost one trillion pounds. Lord Hutton, the former Cabinet Minister of Labour is responsible for the review of public sector pensions on behalf of the coalition, yesterday described the rising cost of creating a "moat unjust."

He suggested that public sector workers to start wearing more.

He will now undertake a review to reform the system.

In the interim report, Lord Hutton said the final salary pension schemes were still the norm in the public sector.

Relatively few private sector workers offered generous schemes, which are very expensive for employers. of final salary pensions your employees a guaranteed income during retirement, the value to two thirds of final salary.

Public sector workers, if only a modest amount of their income to finance pensions in relation to the contribution made by the government. More than 12 million people now have the right to a public sector pension.

The revision to the conclusion that the number of retired public sector increased by 700,000 over the past decade - from 27 per hundred higher.

Many of those in the public sector more than 40 percent of their adult life spent in retirement as life expectancy increases. Yet, despite those who have another 12 more years to survive in the past 50 years, the retirement age remained at 60.

The pension cost is increased by more than a third, almost entirely funded by the taxpayer.

For example, in 1925, teachers pay five percent of their income into a pension and the government also pays five percent. Today, teachers contribute 6.4 percent but the government pays 14.1 percent.

If less than 2.5 percent of judges, their income taxpayers more than 30 percent contribution, the report said.

The bill to pay pensions to members of the public sector funded schemes reach 1.9 percent of GDP and remains at that level for the next decade. Lord Hutton said the public sector plans are unsustainable in their current form.

Although how the costs are shared between employers and employees through various regimes varied, a "vast majority" of the additional costs are met by the taxpayer.

The pair has called for a new model of pension plan, under which risk was evenly distributed between the workers and the government. The average pension paid to a public sector workers are already only about £ 7,800 per year.

Half of workers receive less than £ 5,600 a year, while 10 percent get £ 1,000 or less.

But the highest-paid public sector pensions are very generous with gold, which represents the majority of the cost.

For example, there are more than 2,300 NHS employees receive pensions worth more than £ 67,000 a year.

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