Posted on 10/06/2010 5:46:37 AM PDT by Oldeconomybuyer
Millions of public sector workers will have to pay more into their pensions and retire on less in a purge on ' unsustainable' gold-plated funds.
Teachers, NHS staff, local government workers and other state employees are then expected to be switched away from final salary schemes into less generous ones based on career average earnings.
But the reforms will pitch the coalition into a major battle with militant public sector unions. Leaders are already threatening a wave of strikes as they fight to protect their workers’ pay and perks.
Six million state employees enjoy generous pension schemes that are now largely a thing of the past in the private sector.
Most enjoy a guaranteed pension, index-linked for life, based on two-thirds of the salary they earn on the day they retire.
Many can also expect to retire at 60, or even earlier, though new entrants are expected to work till they are 65.
The system of funding public sector pensions – and the last Government’s refusal to publish clear figures – means the exact size of the taxpayers’ liability is unclear. But experts say the total bill is likely to be more than £1trillion.
(Excerpt) Read more at dailymail.co.uk ...
The Ponzi Scheme is beginning to unravel....................
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