Guest 745- Registered: 27 Mar 2012
- Posts: 3,370
#1
Local Government Pension Scheme a ticking financial time bomb
In earlier research, the TPA has revealed that, despite taxpayers paying for massive employer contributions equivalent to £1 for every £5 raised in council tax, there is a huge £54 billion black hole in council pension schemes. There is a real risk that the cost of closing that gap will fall on taxpayers particularly because, in an ageing society, there are more and more pensioners for the active members of the schemes to support.
New TPA research this week showed that in 2010-11 there were fewer than 1.6 active members of local government pension schemes for every one drawing a pension. Five years earlier there were nearly 1.9 active members for every one drawing a pension and in the wider UK economy there are 3.2 people of working age for each person of State Pension Age or over. To find out how dangerous your council's pensions time bomb is, you can enter your postcode on our new pensions web tool. There needs to be continuing reform to the Local Government Pension Scheme if we are going to avoid a serious liability for taxpayers.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
#2
"Council leaders have attacked the Taxpayers' Alliance's predictions on the Local Government Pension Scheme (LGPS), claiming the analysis is 'flawed and inaccurate'."
From...
http://www.localgov.co.uk/index.cfm?method=news.detail&id=106162Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 714- Registered: 14 Apr 2011
- Posts: 2,594
#3
It's a ponzi scheme
Guest 698- Registered: 28 May 2010
- Posts: 8,664
#4
It's the only fully-funded scheme in the public sector.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
Guest 653- Registered: 13 Mar 2008
- Posts: 10,540
#5
Forgive my ignorance David, but what is a "Ponzi" scheme ?
Roger
Guest 714- Registered: 14 Apr 2011
- Posts: 2,594
#6
Named after a fraudster who ran a pyramid scheme in New York a hundred years or so ago Roger, Bernie Madoff was the latest crook.
Essentially the people at the top are paid from the contributions by the people at the bottom, inevitably the money runs out.
Guest 653- Registered: 13 Mar 2008
- Posts: 10,540
#7
Thanks David.
Roger