I’ve been seeing quite a bit of talk about public-sector pension affordability on Twitter again, so it seems time for a reblog of this article on the topic. I’ll be writing something new on the pension-raid issue as soon as I have chance, as well.
News this week that set me thinking: the government ran at a surplus of over £16 billion in April – thanks to it taking on the Royal Mail pension scheme. This action put the pension scheme assets of about £28 billion into the public balance sheet, giving a big, one-off boost to the public finances. The significance of this doesn’t seem to have drawn much attention in the media.
Apparently, this move also meant taking on a projected liability in the scheme of £37 billion, but the government was happy to take the immediate positive hit in spite of the supposed deficit. If you think this poses a big question as to why they would do this, when their expressed aim is to eliminate the deficit, you’d be absolutely right.
They say that actions speak louder than words. Since it came to power, the coalition government has waged a constant…
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