Clegg zeroes in on public sector pensions, including MPs'

About time something was done with public sector pensions.

Private sector employees pay more to public sector pension schemes than we do to our own - how unfair is that??

Well makes sense but we will have to see if this is all talk and no action like previous governments going back decades. Maybe now as we are up to our necks in debt something will actually happen but expect lots of unrest from the Unions though. They won't like it one little bit.

At last and this needs to be addressed on all Civil Servant FS schemes then they can face the world as the rest of us have to.

Imagine paying into your very own defined contribution pension scheme and in the very first year that you are retired the provider gives you all your contributions back and then pays you an index linked 50% spouse's pension with a 5 year guarantee for the rest of your life. It's too good to be true, no such scheme exists you would say. Well join the public sector because that's how their scheme operates....

Makes sense to bring public sector pensions in line with the private sector and politically making MP's pensions first for the chop is a wise move. As I understand the current situation a retiring Prime Minister gets an index-linked 2/3rds pension irrespective of how long he's been in office.

Some of the savings made could be spread around more equitably by enhancing the basic state pension. I would favour a citizen's pension paid at say age 68, irrespective of NI contributions. If the citizen's pension is set at a reasonable amount we could do away with the New Labour red tape of means tested extras.

I have been banging on about this on various blogs for more than two years (and did not like it for a number of years before that). About time that someone in government has stood up and spoken as it really is, and pledged to put it right too.

As I have said many times, the sooner these unaffordable millstones are taken from around our necks, the sooner we can expect a real recovery.

And in addition, the pay and pensions of many senior managers in the private sector must also be taken down to affordable amounts and in line with what work these people do, such that reasonable total remuneration is paid by the owners, who in many cases are ourselves through our own savings and pension schemes.

I look forward to Mr. Clegg and anyone else in a the position to do so, to pledge action in this area too.

People criticised the Tories for not smashing Labour in the election, but lets face it, how could they have done any better?

Labour had bought votes from the public sector, the dole bums and most of the immigrant community at the cost of the tax payer so already had half the country in their pocket. Whilst the continuation of public sector FS schemes was clearly not sustainable and consuming vast amounts of tax payer money, no Labour government would have risked alienating such a large swathe of their voting base by addressing the issue.

The last government seemd to have no interest in doing what was right for the country and only in securing its own position in power. So glad they have finally been kicked into touch.

Great to see the coalition tackling such an important issue, though I guess they have little to lose in doing so, as most public sector FS members were unlikely to have voted Tory thats for sure!

All most private sector workers want is equality and a fair pension system. Hopefully the removal of MPs pensions going forward will make them realise the plight of the common pension saver whio doesn't have a gold plated FS scheme to fall back on...

We're all in this Recession together! It's not fair that the Public Sector has been 'immunised' from the cutbacks that the Private Sector have had to accept 2, 3 years ago and longer!

Keep it up Nick Clegg - now let's see some 'Proper' cutbacks in the Benefits System - get these Single Mums and Absent Fathers back to work - they've been too comfortable bleeding (and some, cheating) the system dry at the taxpayers' expense!

No politician should be ever be entitled to a publicly funded pension greater than the national average income.

There is a God !

For those who do not remember MPs inceased their pensions by 50% on the same day that the mighty Pru closed its Final Salary Scheme to new members , this was a disgrace and simply slipped under the radar.

I agree with Nick lets have our money back.

The MP's complained about having their expenses slashed so it will be interesting to see what they say about this! It is about time that they had these gold plated pensions stopped.

Come on Cleggy lets see you get this through parliament and be quick about it!

At last! Come on Cleggie - clog 'em.

With a bit of luck the Civil Servants in the tax office will be so miffed that they will go on strike. I wouldn't be surprised if other public sector workers go on strike too, if he carries out his promises. So with a bit of luck this catharsis will be like Maggie and the miners. One big push and they're flattened.

It seems that MPs are well overdue for a kicking. From what I see in the Weekend papers they are giving the Expenses Watchdog a hard time – the cheeky beggars. It seems that thy will not learn until they are coshed.

Now for the Canaries - if the BoE takes them over presumably they will officially be public servants (won't it be nice to have them a bit servile for a change).

I wonder if this means they won't be picking our pockets any more - well I can dream can't I?

Hang on...private sector managers are paid way more that public sector. What about the CEOs of big companies who earn millions in cash and share options? I manage a budget of £460m and 870 staff providing front line services...my salary is £70k. Would be a bit more in the private sector I think, but I don't mind partly because of the pension.

No more talent in public services if you cut pensions - will that make them better or worse??

To Dave Barker

In private companies they create their own wealth and profit (or loss) and win or lose as a result. They are not directly funded by the tax payer and they pay tax on their profits to help fund the private sector. If you think you can earn more in the private sector they why not go for it?

If you had to make a profit each year (after tax) of say 10% on your £460 million budget and 870 staff how would you do it. The more profit you make the more bonuses you would earn ? You need to also allow for the cost of your employees pensions as well though and you may well be surprised to discover how much you would need to put aside each year into your "funded employee" pension scheme. With 870 employees the costs would be staggering on a final salary basis even on a 1/80th basis, indexed liked etc..

To Dave Barker again

Your "Public Sector" pension "if unfunded" is only as good as the "promise" of any future Government to be able to afford to pay it !!

If the country cannot afford to pay it by the time you retire then it does not matter how good it may seem now if there is simply not enough money in the kitty to pay it.

This is something that needed to be tackled 10 years ago but Labour never had the political balls to do it, especially given the "payroll vote" they created through lavishing taxpayer's money on the public sector. I would say that the way to do it with least risk of strikes is just to make a blanket ruling across the whole public sector. In their hearts public sector workers know it's only a matter of time before the farce ends. Clegg is right to frame the argument as to why should private sector workers without final salary pensions fund gold plated pensions for the public sector employees who are working for them.

The public sector always says they get paid less and it is the pension that compensates. If Nick Clegg does align pensions with the private sector then market economics will apply, so if the public sector loses it's best people to business and commerce then the salaries will have to be adjusted to attract the right calibre of candidate. Pension to one side for the moment I would like to see more public servants with a genuine commitment to service to the public, in some instances they act like they are so important and the end user of their service are a hindrance. Unfortunately one example of this is my local hospital in Chesterfield!

Would Nick Clegg now like to own up to his own gold plated pension from the European parliament as a result of being an MEP for 10 years?

"In private companies they create their own wealth and profit (or loss)" - Michael Fallas. Interesting that they don't stand by their losses and go under? Just thinking of Northern Rock, RBS or would that be just so unthinkable for a capitalist economy!

To anonymous 3

Northern Rock and RBS would have gone under or been taken over but it was the Government that decided to step in which they argued was in the interests of the public and there are plenty of arguments on both sides if that action was right. Not sure what your point is. Governments as we now can do what they like and they decided to use taxpayers money (in fact borrowed money) to bail them out.

Why do you choose to be anonymous what are you fightened of I wonder ?

Say what you think by all means but don't hide behind the skirts of anonymity.

Dave Barker

A couple of points. First regarding employment, with your skills and responsibilties I presume it would be a piece of cake to go and get a similar job in the private sector and earn a shed load more. Why not give it a go?

As to pension, assuming you achieve 40 years on your current salary , ignoring inflation the cost of providing your pension would at present be around £1.6 miliion.

Very few in the private sector have anything remotely approaching that sort of figure, apart from bankers and Quango wallers (who aren't really private sector at all)

Clever Clegg-perhaps the first of the summer wine?

A few years ago the MPs (aka money-grabbing, self-serving ********s) voted themselves the most generous pension package of all. I didn't realise until a couple of weeks ago that an MP with 40 years service could actually get a pension equal to 100% of pay. Unbelieveable - no one else can do that! Take away all of their FS pension benefits and give them Personal Accounts (or whatever they are called this week) instead, That'll bring them closer to their constituents than anything!

Dave Barker

A staff of 870 with a £460m budget. May I point out that this is precisely why the Public Sector is held in such low esteem - and you have the temerity to compare yourself with the private sector.

Taking one example at random. In their last accounts British Land made a PROFIT (if you know what that means) of £1,128 million with 162 – Yes one hundred and sixty two employees. By that measure your £70k p.a is vastly overpaid.

Dave Barker and Harry K:

At the end of Queen Victoria's reign, 300 million Indians were ruled by barely 1,500 British administrators of the Indian Civil Service, and perhaps 3,000 British officers in the Indian Army. Makes Dave Barker's department look a bit top heavy, does it not? Like many in our public service.

I'm beginning to like the look of this coalition thingy!

I remember Steve Bee commenting on MPs pensions when they were slashed from a 60ths scheme to a 40ths scheme and the reported uproar this caused by MPS because they didnt think such a cut was fair!!!!!!!!!!!!!!!!

While speaking to a Chief Exec of a govenrmen Department recently he was arguing that his salary of £160k plus was low in respect of what he would get paid if he was in Private Industry for the same role - possibly !!! But the additional income he may earn would probably have to be ploughed back in to a pension to give him any chance of matching the benefits of his Index Linked -promised pension scheme - oh not to mention the Holidays and Scickness pay he also gets from his employer - or should I say the taxpayer. Oh and then there is now also the problem that he wouldnt be able to put that much into his pension because he earns too much!!

I used to be a Civil Servant and like the vast majority in the public service now- I didnt appreciate the actual value of 'additional benefits' for service - then I entered the real world without a comfort blanket. I am not moaning as I made my choice and do not regret it. However it is about time that the public service woke up and thought about running their organistions like a business and stop moaning and thinking they are hard done by! Accept the fact that like private industry - cut backs will have to be made - too easy for too long!