1998: The Negotiator – Gary Gray
I think that being in Government must be one of the most testing experiences for anyone. Unless you live in a State that does not provide democracy, politicians have to constantly renegotiate. Today saw the Government offer its latest stance on Public Sector pensions. This has proven a difficult negotiation as the majority of people in Britain do not receive a pension anything like as good. Some take the view that those within the Public sector earn less and that their pension is a form of compensation, others take an altogether different perspective. Public sector employees generally command favourable opinions from the public – after all they are serving us all, so we tend to have a “soft spot” for certain types of public sector employees, but not all. I imagine that this makes being a Union leader a rather complicated position. I advise a number of clients working within the Public Sector, so best advice is clearly to hang on for the best possible deal.
The discussions have been moved forward and the Treasury has released a statement and is now in further discussion with the unions. Depending on your perspective, one might say that this is a victory for the unions. Alternatively, one might argue that the Government has simply used negotiating skills – something that it appears many “buyers” within the public sector have lacked over the years.
Long story short, the proposals are that those that are within 10 years of retirement will not be effected by proposed changes. The accrual rate would also appear to have been improved from 1/65th to 1/60th. It is currently 1/80th or 1/60th depending on which scheme you consider. For the full Treasury statement click here, however please be warned that this is still “in negotiation” and could be withdrawn or altered. Whatever the detail, the Public Sector pensions are still almost certain to remain amongst the best in the country. Thanks to the Unions or Government, depending on your perspective. The other certainty is that Public Sector workers will pay more and for longer, the real question is “by how much?”
We are a boutique firm of financial planners. We create financial plans designed to achieve a desired lifestyle. We will craft and implement your plan that will provide you with the greatest chance of accomplishing your unique goals based upon the values that you hold. Financial products are little more than the tools to achieve your required results
Call us today or visit our website for more information and to arrange a meeting