Tuesday, March 29, 2011

Public sector pensions

... are getting cheaper.

Yes, that's right. The cost of public sector pensions is going to peak in .... (drumroll) ... 2011. Yes, this year. After this year it falls steadily into the future, on whatever forecast you choose. So why are we being told that we need to cut public sector pensions because of the huge liability they place on future taxpayers?

There are two obvious answers to this. First, there are powerful people who don't like the public sector or their pensions, and want to destroy them. Second, people who may not care too much either way don't understand pensions, or forecasts about their costs, so it's easy to kid them. But the truth is that we are being told porkies about public sector pensions. What's going to happen is this (courtesy of Yorkshire Ranter):