COMMENT: Staring into the public sector pensions abyss

April 13, 2012 1:07 PM

Writing for Public Service Europe, Emma Boon argues that the £54 billion deficit in local government pensions isn't going away without reform of council pension funds.
If you have ever worried about not paying your credit card off at the end of the month or lost some sleep over an overdraft, then spare a thought for the poor soul in charge of Birmingham City Council's pension fund, in the United Kingdom, which currently has a deficit of £1.3 billion pounds. That deficit is not quite the same as an overdraft. It is the difference between the amount they are expected to need to pay local government pensioners in the future - their liabilities - and the assets they hold to pay them. But, in the end, the same rules apply. At some point, you need to have enough to pay your debts or you will get in real trouble.

 Click here to read the full article on Public Service Europe

Writing for Public Service Europe, Emma Boon argues that the £54 billion deficit in local government pensions isn't going away without reform of council pension funds.
If you have ever worried about not paying your credit card off at the end of the month or lost some sleep over an overdraft, then spare a thought for the poor soul in charge of Birmingham City Council's pension fund, in the United Kingdom, which currently has a deficit of £1.3 billion pounds. That deficit is not quite the same as an overdraft. It is the difference between the amount they are expected to need to pay local government pensioners in the future - their liabilities - and the assets they hold to pay them. But, in the end, the same rules apply. At some point, you need to have enough to pay your debts or you will get in real trouble.

 Click here to read the full article on Public Service Europe

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