Few people understand how pensions work. The government is relying on this in their attacks on public sector pensions. Ministers claim that they are gold-plated, unreformed and unsustainable. The right-wing press join in by saying that it is unfair that private sector workers’ tax should pay for public sector pensions.
Yet what the government is doing is simple. It is asking public sector workers – already facing a two-year pay freeze, job losses and inflation running higher than it has for more than a decade – to make a further, and even more unfair, contribution to reducing the deficit.
They are doing this by trying to impose an arbitrary extra pension contribution of three per cent of pay on the public sector. This is not a pension reform – it is simply a pay cut.”
As usual, common sense from False Economy!
See full article @