Politicians clash on pensions as huge deficit is revealed

THURROCK Council is facing a pension deficit of around £104million.

Figures released by the TaxPayers’ Alliance show the authority had assets of £203million in 2010 to 2011, but liabilities of more than £308million in the Local Government Pension Scheme – a deficit of £104million.

Local authorities across the UK had a combined pension deficit of £54billion for 2010 to 2011, with Birmingham City Council the largest at £1.3billion.

Thurrock’s Tory MP, Jackie Doyle-Price, said the answer is for workers in the public sector to pay more into their pension.

She said: “Thurrock is in no worse a place than any other local authority.

“These figures illustrate why those of us who work in the public sector need to start paying more into our pension pots.

“Because we are all living longer, there simply isn’t enough money going into the pension fund to keep paying the pensions which will need to be funded over time. If we don’t grip this now the taxpayer will have to foot the bill and that isn’t fair.”

The Alliance says the Local Government Pension Scheme is more generous than private sector pensions and needs reform.

But Labour parliamentary candidate for Thurrock, Polly Billington, criticised the campaign group. She said: “Thurrock Council’s pensions scheme is about mid-table when it comes to similar councils.

“The TaxPayers’ Alliance doesn’t help find a solution by undermining the principle of properly funded pensions for people who work hard and provide services we rely on.

“It’s important that regardless of who we work for, we have decent pensions that support us in our old age. It’s a pity the TaxPayers Alliance doesn’t recognise that.”

A spokesman from Thurrock Council said: “Thurrock is part of the Essex County Council pension scheme which, like many such schemes worldwide, has a deficit.

“However, the deficit is not a ‘real’ one and would only come into play if every member of the scheme retired today – not a realistic scenario.”

Comments(8)

Bernard 87 says...
11:22am Wed 18 Apr 12

So Eds mate Polly thinks that because Thurrock is just as worse off as similar local authorities its ok. She also moans about the TaxPayers Alliance offers no solutions to the problem. This is a bit like her Labour Party who moan about the coalitions cuts yet fail to offer a credible alternative (other than borrowing and spending more).

JDP is spot on. The pension pot needs to be expanded and the only way this can happen is if people who are going to receive a public pension put more into the pot from their own pockets. Hopefully this will become easier once public sector wages start their slow assent upwards again.

coddy says...
12:08pm Wed 18 Apr 12

Great idea from mrs price to say that public sector workers pay more pension.My wife's a ta at a local school & hasnt had a pay rise for 2 years yet the working age unemployed have had a 5% pay rise. Another thing thats gone up under the tories is vat. Be nice if my wife got a payrise so she could contribute more.

A Dermot says...
12:39pm Wed 18 Apr 12

Perhaps, before Jackie Doyle-Price opens her mouth, she would like to swap her guaranteed gold platted MPs pension scheme with all its perks for the rapidly reducing Local Government Pension?

Before she claims we are all in this together, her MPs pension scheme is way beyone what any of us mere mortals could ever receive when we retire.

If you want to put your money where your mouth is Jackie then publicly campaign that your golden MPs pension scheme is reduced to the current Local Government workers pension scheme - and every time you reduce its value then have your pension scheme reduced by the same amount.

Is that the sound of silence from Jackie?

improving road safety says...
5:00pm Wed 18 Apr 12

Bernard 87 you must live in a different world to the rest of us and need to take off those rose tinted glasses, I am sure you are very aware that the Conservative party is rapidly losing Public confidence and are now on the way out with the Lib Dems, since the Conservative party has been in Government the coalition party have used the same brush that old Maggie Thatcher used, and that is going to be the Conservatives down fall, you only have to see how the Conservative, Lib dems Budget failed to turn the Country around, in it together, they must be joking, they have shown their colours by again looking after the rich and stuffing the poor, Its now time for new faces in Parliament to sort old Dave and his mate Cleggy out, and Labours new Parliamentary Candidate Polly Billington would be a good start, what positive changes in Thurrock or Parliament has Jackie – Doyle – Price achieved?

Mattster says...
7:28pm Wed 18 Apr 12

The pensions crisis has little to do with politics. The basic facts are that people retiring now have a much longer life expentancy than calculated when they first started paying into a pension fund - effectively they havent paid enough in. That shortfall is why pension funds are running defecit's and why people need to pay more in.

Marcus P says...
11:47pm Wed 18 Apr 12

If we are going to save money why not make all non UK citizens take out private health insurance. There should also be a five year qualifying period before any non UK national can receive any type of welfare. the Lib/Lab/Cons tell us we must work longer and pay more, yet dole out welfare to the world and his wife.

Bernard 87 says...
8:34am Thu 19 Apr 12

Improving Road Safety - have a read of Mattsters post as it sums up the situation perfectly. The pension problem is not a new thing but the last government simply chose to ignore it knowing they would be booted out of power and it would be somebody elses problem.

MPs have also had to contribute more to their pension, from about 10 to 13% on average I think, so this isn't a case of telling public sector workers to do one thing while they do another (for once!). In order for public sector workers to contribute more, they need to earn more which is why I said wages will have to start creeping up again before increased contributions can begin to plug the gap.

I do not know why the left seem to refer to this government as Thatcher like? There is very little that this government has done which is remotely Thatcher-esque so I see little comparison. I think every Tory government between 1990 to eternity will be labeled 'Thatcher-like' by the left. Even one as liberal as this coalition.

Yes Eds best mate Polly would be a great start in changing Thurrock, just like all of those other Thurrock Labour MPs who have all made sure that Thurrock remains one of the least prosperous parts of Essex.

Yet again, I agree with Marcus P.

A.N.Other says...
9:40pm Thu 19 Apr 12

Bernard 87 wrote:
Improving Road Safety - have a read of Mattsters post as it sums up the situation perfectly. The pension problem is not a new thing but the last government simply chose to ignore it knowing they would be booted out of power and it would be somebody elses problem.

MPs have also had to contribute more to their pension, from about 10 to 13% on average I think, so this isn't a case of telling public sector workers to do one thing while they do another (for once!). In order for public sector workers to contribute more, they need to earn more which is why I said wages will have to start creeping up again before increased contributions can begin to plug the gap.

I do not know why the left seem to refer to this government as Thatcher like? There is very little that this government has done which is remotely Thatcher-esque so I see little comparison. I think every Tory government between 1990 to eternity will be labeled 'Thatcher-like' by the left. Even one as liberal as this coalition.

Yes Eds best mate Polly would be a great start in changing Thurrock, just like all of those other Thurrock Labour MPs who have all made sure that Thurrock remains one of the least prosperous parts of Essex.

Yet again, I agree with Marcus P.
Mps can choose to contribute 5.9%, 7.9% or 11.9% - the more they pay in the more they get out.

Even the most basic of research shows the scheme is beyond the wildest dream of any local government employee with a maximum final pension being two thirds of final salary.

MPs pensions should be exactly the same as the local government pension scheme.

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