Advantages Can manage the evils of bad management
Disadvantages Used to readily, possibly as the leaders cannot debate instead
How are you today - I hope you are well - let me tell you a story about me, about you, about what I know and what I think - for all it's worth - which may be nothing.
Who am I?
Well - that is a question and for those who know me you will know my answer will not be straightforward when I get a bee in my bonnet so please take a stroll through my thoughts (however naive and / or misinformed you may think them to be) and when you get to then end and only when you get to the end please let me know your own thoughts.
The current problems public sector wide revolve around pensions (and redundancies).
There have been many tube strikes, firemen strikes, lecturers’ strikes, binmen strikes and other civil service strikes over the last 10 or so years, which were about safety and pay, but the current ones are about pensions and redundancies.
The current pension system is based on, if not a ponzy scheme, it is certainly a pyramid system. Everyone gets a final salary pension which means when you retire you get a pension based on what you finished earning. Even if you were earning peanuts for all the other years. In order for this scheme to work more people need to pay in (a pyramid system) or growth needs to be massive to make your pension worth less compared to the earnings of those paying in (so the latter is unlikely without an element of pyramid system.
Don't worry pyramid system are not illegal and I am not suggesting the final salary pension system is illegal. (A ponzy scheme is illegal - that requires people to feed in knowing the scheme is only supported by further contribution.
It is however poor economics.
So the new scheme is based on a lifetime’s average earnings or contributions based. So if you earn £10,000 for 10 years and £20,000 for the next 10 years you have a pension of £10,000 contributions and 10 years £20,000 contributions.
This to me makes perfect sense and that is how I thought a pension fund was run. If I had only read about Robert Maxwell when I was at school - I would know this was rubbish.
Attention, this is the first review from this author
Instead of giving a negative rating, consider:
Help this member by giving your advice
Report fraud (for example plagiarism) or other issue with the review to the Ciao support team
Add your comment