I am sick of hearing some private sector workers bleating on about how their taxes are being used to pay public sector pensions. It is true that state pension is paid from taxes and all of us who pay tax, whether in the private or public sector, are therefore funding state pension. That means that I, a public sector worker, am playing my part in supporting retired private sector workers just as much as anyone else is.
It is a myth that private sector workers pay public sector pensions through their taxes.
Let me point out that for the last 34 years I have been paying income tax, just as private sector workers have. For the whole of that time I have been paying into a pension scheme (unlike some in the private sector) and so it is I who have made provision for the pension I will eventually receive.
Down the years, government has taken my pension contribution and promised, through a contractual agreement, benefit in retirement through the NHS Pension Scheme. Government has not, however, taken my contributions and invested them in order to generate those benefits. No. My contributions go into the treasury and government uses the money as it sees fit.
You could consider that government uses the contributions of working public sector employees to pay the pensions of retired public sector workers.
The unions have suggested to government that a proper investment scheme be set up using public employees' contributions so that public sector pensions are self-sustaining and clearly independent of the tax system. This is, of course, unpalatable to government because it would no longer have access to a very large amount of money to mismanage.
What is truly tragic is the failure of government to ensure that private sector workers are signed up to a decent, properly regulated and ring-fenced pension scheme, that people like Robert Maxwell cannot make off with the pension funds of those who are, and that companies are not allowed to take pension fund holidays so they can pay bigger dividends to their shareholders.
Private sector workers should be up in arms to make sure they are treated well rather than trying to see that the public sector gets done down. Instead of moaning, 'Why should they have that?' they should be demanding, 'Why can't we have it too?' As far as I am concerned, everyone should be able to look forward to financial security in their declining years. There are no free hand-outs to be had, however. Future security means giving up otherwise disposable income now in contribution to the fund.
I pay my way in society through my taxes and make a contribution to society through my work. I am paying for my pension. I am not a parasite!
