Pubs, pints, pensions and MPs

I live in a small Shropshire Village, just a couple of miles from Ironbridge, the birthplace of industry according to the local tourist information signs. There are no shops and no A-roads, and hence the village pub is a focal point for the more outgoing villagers.

So, reading today’s media headlines about the imbalance in numbers of public sector pension scheme members vs private sector pension scheme members (defined benefit) made me reflect on the people I know locally. I did a quick head count of the pub’s regulars and I reckon over 50% work for the public sector and the majority of those will receive pensions from unfunded schemes, though most do pay employee contributions. According to calculations in today's media, it's going to be a tall order for the nation to pay all of the promises it has made so far to our teachers, police officers, civil servants etc.

Whilst on the subject of employee contributions, I was having a pint with an MP recently and we got onto the subject of pensions. I was amazed at the MP's almost apoplectic retort that they have to contribute towards their pension – it was as if the MP was being asked to pay for the Crown Jewels. When I explained that an MP's pension was pound-for-pound one of the best in the UK, and that for 11-12% member contributions he’d be hard pressed to find a better scheme, he promptly changed the subject. ‘Reality check’, I think is the phrase that comes to mind. See:

Pensions warning: 'A slow motion car crash' (Daily Mail)

David Blunkett says people should work until they are 'incapacitated' (Telegraph.co.uk)