Labour must slash their own lavish pensions if they really believe in public ‘service' [Yahoo! Finance]
MARKS & SPENCER GRP S/ADR (MAKSY)
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Source: Yahoo! Finance
It may be tempting for her to ignore everything but the urgent and immediate, but if she wants to make her mark as a real reformer, she should sort out public sector pensions , which governments have now dodged for decades. Making public sector pensions sustainable is crucial for public sector workers, as well as taxpayers. Without controlled changes today, public sector defined benefit (DB) pensions may end up being scrapped altogether, or taxed away in retirement. Ms Reeves should cut the cost to taxpayers by reducing the generosity of future public sector defined benefit pensions – without touching pensions already earned. The new lower public sector pension could be as an example 1/80th of salary for every year worked – half the current value – with annual inflation increases capped at 3pc, just like in the private sector. The value of this less generous pension – half average salary over a 40-year career – would still be much more generous than private sector defined c
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