Tuesday 10 November 2009

6.6 years!

As soon as I read this story I could guess what was coming.

Here's the first quote:

The first stage in Glasgow City Council’s trawl for redundancy volunteers will see letters sent to all 3500 employees aged 50-plus by the end of the month
And the bit that I expected is this:
As part of the deal, employees aged 50 or over with access to a pension will receive up to 6.6 added years’ pension and up to 30 weeks’ redundancy pay, while those with no access to a pension are able to apply for up to 66 weeks’ redundancy pay.
I'd love someone to have given me 6.6 added years' pension but I'm employed in the private sector - by my own company, in fact. Funnily enough my company doesn't have any pension provision for its staff (me) and if it did it would have to generate more income to pay for it. In other words, I'd have to work more hours and pay a lot more tax thus funding government employees who can retire early. The pensions that I do have on top of the state one have all been saved by myself when working in various private sector jobs over many years.

It is quite outrageous that local (and national) government workers can get these hugely inflated pension benefits when retiring early. Here in Edinburgh the Lothian Pension Fund employer contribution rate is over 20% of gross salary. That too is an outrageously high figure and helps explain the parlous state of the national finances. Needless to say, the removal of almost, if not all, of these state employees is a matter of the highest urgency.

1 comment:

David Farrer said...

Comments made on previous template:

Colin Finlay
Never mind, at least Glasgow Council are investing taxpayers' money with the wisdom and acuity for which it is renowned, viz., by funding the absolutely essential 2014 Commonwealth Games, the financial deficit for which will be happily borne by that sports - loving city's ovine denizens.

16 November 2009, 01:24:01 GMT
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james higham
This is the way it's been skewed around.

12 November 2009, 13:31:36 GMT
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You truly are an investment banker, aren't you?

11 November 2009, 11:07:30 GMT
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David Farrer
I don't quite get your point. As far as I can see they are getting another 6.6 years' worth of pension contributions on top of the contractual obligations.

10 November 2009, 19:33:14 GMT
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Isn't an employer supposed to start with a low offer that may increase through negiotiation? Makes you wonder how hard they tried on the tax payer's behalf.

10 November 2009, 17:19:21 GMT
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Eh, I work at an investment bank in glasgow and total amount i have going into pension is 18% salary.  
I don't think 6% salary results in very much pension somehow, private or public sector.

10 November 2009, 12:38:25 GMT