Quote:
Originally Posted by Nick Greg
Civil servants pension contributions vary according to salary. Its not a flat 6 per cent
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I know that - overall the members contribution equates to circa 6%. If you take an average across the board it is about 4.6%.
Regardless of the tiny employees contribution - the employer (ie US -the taxpayer contributes a further circa 19%.
The scheme is a non-funded defined benefit scheme with an open ended liability. A liability that we the tax payer has to pick up.
Being non-funded - it was civil servants that devised Gordon Browns very first stealth tax whereby dividend income within pension schemes are taxed.
Obviously only funded schemes are hit.
Strange how those in charge of all Pension Scheme Legislation devised a tax that did NOT hit THEIR scheme - but DID hit all those schemes where the individual or company/employer actually has to SAVE MONEY for their retirement and not rely on just snatching what they need from the public purse.