Tag Archives: john ralfe

Public sector pensions: cuts amount to 7%

Robert Peston’s analysis of the proposed public sector pension reforms from John Hutton contains this key calculation:

The estimate – made by the analyst John Ralfe – that the switch would save just £2bn a year, out of the estimated total annual cost of state pensions (much of which is hidden) of £30bn.

That £30bn is Ralfe’s estimate of the annual cost. It is double the official estimate, with the disparity due to a disagreement on the appropriate discount rate for valuing future liabilities.

A reduction in the value of retirement benefits of 1/15th would of course be unpleasant. But compared

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  • Mary ReidMary Reid
    Dear Theakes - I am not sure why you are asking me that question. If you fully support the Lib Dems you know what the answer is: join the party, get involved an...
  • expats
    Adrian Sanders, your article reminds me of the old joke about the military parade where Mrs. Sanders's boy "is the only one in step".... You'll have no truc...
  • theakes
    Dear Mary, Like many I live in a seat where the Lib Dems could not field a single candidate in the County elections and where one fully expects a lost deposit ...
  • Brad Barrows
    The time to create a Progressive Alliance is after the next election if no party wins an overall majority. In that situation, the Liberal Democrats should work ...
  • TonyH
    Excellent article Mary. All LibDems in Blue Wall seats please read....