Originally posted by ahinton
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Many large companies have now discontinued final-salary schemes to new (and sometimes even existing) employees because they describe them (the schemes) as 'too costly' ... their words not mine.
I have never worked in the public sector but I understand that many public sector workers are complaining that their pension benefits are being reduced by Government. Spokespersons for the Government say this has to be done because some of these pensions are now 'too generous' and 'can no longer be afforded' ... again their words not mine.
Of course the Government has a financial deficit to consider though I'm not sure that cutting the value of pensions sometimes built up over a lifetime is a particularly fair and suitable way of reducing that deficit, and, in any case, will only create more financial problems in the future.
As for the large corporates I'm not entirely convinced that they are now so poor they cannot pay their staff a decent pension on retirement. More likely it's just an easy and quick way to boost the profit line by reducing the cost of the pension fund and thereby pleasing the shareholders!
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