Colchester Council is set to use £250,000 of taxpayers’ money to increase its pensions contribution as it battles against a £51million blackhole.In other words, rather than face up to the deficit, it's going to steal from its council taxpayers...
As staff contributions do not cover the cost, the rise is roughly the equivalent of an annual 2.5 per cent council tax hike for residents.
Which would bring the hammer of central government down on them. So they won't do that, they'll do this instead.
How's that for sleight of hand?
Paul Smith, councillor responsible for resources and diversity, said: “We are having to look at the pensions fund every year, and how the blackhole looks depends every year on different things.”Such as how profligate you've been with our cash?
“For instance, if it has been a good year, and we have had people retire and not so many new staff arriving, then it will not affect it too badly. ”But the recent years have been a bit of a boom time for local council leeches, haven't they?
“It also depends on how our investments have done. Last year, the deficit was £51.939million and I think that was quite good because we had a good year with investments.”Ah. Right. We're back to the Iceland debacle again...
The shortfall this year for Braintree Council increased by £14.736million and now stands at £61.311million.And they will go on raiding the coffers until nothing is left...
Maldon District Council’s pension fund deficit has increased by more than £5million.
"The shortfall this year for Braintree Council increased by £14.736million and now stands at £61.311million."
ReplyDeleteI'm sure Holby will organise a PayPal account to raise a few bob....
Councillor Smith "“For instance, if it has been a good year, and we have had people retire and not so many new staff arriving, then it will not affect it too badly. ”
ReplyDeleteTypical "out of the posterior orifice comment from someone who patently doesn't understand how these things work - a retired member is a drain on the fund, receiving their benefits, i.e pension, and if they aren't replaced by a new "contributing member" outting money into the fund" well, provided the remaining funds start attracting sufficient extra "interest or returns on investments" to meet for example any "indexation of pensions in payment" costs, probably all well and good, but if the returns come in at under the "indexation factor" oooops - one pension fund headed deeper into the black .. as in, doh!, he already said it, "As staff contributions do not cover the cost, the rise is roughly the equivalent of an annual 2.5 per cent council tax hike for residents". How and why do you think the "blackhole" materialises in the first place Councillor Smith?
If we weren't crying, we'd be laughing.
ReplyDeleteThey could also raise the staff contributions - but that is too sensible.
ReplyDeleteIvan - true, up to a point, but if the number of "retired memebrs" increases vastly faster than the number of "active members" then it won't be long before the "increased contributions" required of existing staff in order to purchase them the same benefits as the already retired members when they retire and repair that "black hole" become simply "unbelievable". Some "black holes" might be susceptible to filling in, but others simply reflect a basket case scenario, where the only solution really is to "come up with a new affordable to employees and employer scheme". Sad but true !
ReplyDelete"The shortfall this year for Braintree Council increased by £14.736million and now stands at £61.311million."
ReplyDeleteBraintree district council employs "approximately 560 people" according to their web-site, so their pension shortfall is now £109,000 per contributing member.
How???
"I'm sure Holby will organise a PayPal account to raise a few bob...."
ReplyDeleteI'm sure he will!
"...someone who patently doesn't understand how these things work..."
Or, someone who thinks the people he's talking to can't (or won't bother to) work it out.
"If we weren't crying, we'd be laughing."
I'm doing both! Simultaneously..
"Braintree district council employs "approximately 560 people" according to their web-site, so their pension shortfall is now £109,000 per contributing member.
How???"
One of those figures must be wrong. It's the only explanation.
I'm betting they employee a LOT more people than that.