What It Could Mean for You ...

The HeraldOctober 08, 2010

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Summary


Q. Why have the costs of public-sector schemes gone up so massively, and does that mean the pensions are worth more?

A. The cost to the taxpayer of the five biggest schemes, in benefits paid out, is officially 32% higher than in 2000, due to the big expansion of the workforce, longer life expectancy and the extension of pension rights for women and early retirees. The real costs are estimated by independent experts to be far higher, because of the generous assumptions adopted by the Treasury since 1999. Lord Hutton tentatively agrees, and has asked the new Government to review the rate.

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Extract


What It Could Mean for You ...

The value is effectively one-third more than it was 50 years ago, when the employer (the Government) and the employee each p...

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