Letter: Pension fairness
Any pension scheme which takes an average 6 per cent contribution from the employee but pays benefits that require a 30 per cent-plus contribution is unsustainable and wholly unfair on those who have to pay the difference from taxes on their own often meagre salaries and non-privileged pensions.
Unions will tell us that average pensions are only 5,000, ignoring that this is mainly a function of length of service and that it is multiples more than would be available in the private sector.
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Hide AdAlexander's measures should be seized rather than jumped all over by the unions. Even if Lord Hutton's proposals were implemented in full, public sector workers will remain in a very favoured position: they will still be in a salary-related scheme; the benefits will still be vastly better than virtually all private pension schemes and there will be no increase in contributions for the lowest paid. Taxpayers will continue to subsidise their scheme(s).
They will have to work longer, but increased life expectancy means they will receive their pensions for longer.
David K Allan
Mainshill
Haddington, East Lothian