Audit watchdog explodes the myths about public sector pensions

A NEW report by a spending watchdog has exploded the myths about public sector pensions.

Figures revealed by the National Audit Office show that, contrary to right-wing tabloid myths, public sector pensioners are not fat cats living in the lap of luxury. Instead their pensions are modest, affordable and sustainable.

Figures in the NAO report show that:

The vast majority of pensions are modest. Most pensions paid in both the NHS and civil service are below just £110 a week. A quarter of NHS pensions are less than £40 a week and a quarter of civil service pensions are less than £60 a week.

There has only been a two per cent increase in the average pension since 2000. Yet the average pension for teachers has fallen by four per cent.

Fewer than 0.2 per cent of teacher pensioners, 1.8 per cent of civil service pensioners and 2.5 per cent of NHS pensioners get pensions of more than £40,000.

TUC General Secretary Brendan Barber said: ”The real pension problem in the UK is in the private sector where employers are no longer providing pensions to almost two thirds of their staff, while hanging on to executive bonus schemes in the boardroom.

“Taxpayers are now picking up the costs of this through higher bills for means-tested benefits for pensioners.

‘The campaigns against public sector pensions come either from employer groups who want to distract attention from scrapping their own pension schemes, or right-wing pressure groups and their allies in the tabloids who are deeply hostile to public services.

“The pension reform we need is compulsory employer contributions to pensions for all staff. That must start with automatic enrolment in a pension scheme in 2012 as the first step towards winning decent pensions for all.’