Dear Colleague,
Here is another disappointing summer during what is clearly the most drastic financial situation in the developed world for generations. All due to greedy and reckless bankers gambling with other people's money. The recession is hitting nearly every family in the land, with the end not yet in sight: in fact, the gloom is likely to deepen as the extent of the Government's finances becomes ever more evident.
Already, the knives are out for what commentators see as extravagant and unaffordable public sector pensions; the clamour for cutting them back becoming strident even among some politicians. Now you and I know that the average civil service pension is about £6000 a year, properly funded by calculated deductions from salaries, but this does not deter media stories of lavish retirements enjoyed by time-serving public "parasites".
But the stories have some credence concerning the few very-highly paid senior staff who, competing with or recruited from industry in recent years, have attracted salaries several times higher than their subordinates. We are all tarred with the same brush, but a timely article written by Brendan Barber, General Secretary of the TUC, in the Times on 31 July restores some balance.
Nevertheless, by this Autumn, the Government must find very substantial savings in public spending, and pensions will be in the frame among many other painful steps. It is likely that this September's retail price index, which determines next year's pensions and benefits increases, will be about -2.7%. Current legislation provides for underpinning increases of about +2.5%, which will be fully justified by stuff such as food we pensioners buy in the shops.
Our occupational pensions are probably not so secure, and we await with some anxiety the pre-Budget Statement in November. Cuts must be made soon if Britain is not to be bankrupted, so it is hard to see how we pensioners can escape the consequences.
The Alliance holds its Annual Conference in Coventry on 7 and 8 October, and your Group will be sending a delegate and an observer; we have three motions to defend, which were forwarded last June. The September Issue of the Civil Service Pensioner will contain all the matters to be addressed at the Conference, so I urge you to come to our September general meeting on 15 September at the Central United Reformed Church in Argyll Street, Bath, at 2.30pm to give voice to your concerns and opinions.
We also have an important speaker Tim Moss who will talk about the fast-approaching TV digital switch-over in our region.
Sincerely
Brian Robertson.