Public to foot police pensions? (From This Is Cheshire)

Public to foot police pensions?

4:10pm Sunday 18th January 2009 in News By Nicola Davies

A COUNCILLOR has raised concerns that public pensions could end up being more heavily subsidised by taxpayers.

Speaking at the Cheshire Police Authority meeting last Tuesday, Clr Paul Kennedy (CON – Hatton, Stretton and Walton) queried whether the increasing budget deficit over the next couple of years had been taken into account when considering the police budget and constabulary pensions.

He said: “Pensions are becoming a significant drain on funds for authorities and the state sector in general.

“We are talking about budget gaps of £1million.”

But Peter Nurse, chairman of the police authority, denied any problems, saying: “The Government ensures the pension fund is properly funded and it is not going to sink or collapse.”

Speaking after the meeting, Clr Kennedy, who is a former custodian of a large pension scheme, said he was greatly concerned about pension funds. He said: “Currently pension pots are paid out of general taxation and it is interesting that the police have a very substantial pension fund.

“They are usually reviewed every three years by a pension’s actuary and it is probably 18 months until the next police one.

“There is every chance there will be a very big hit and they will come to the taxpayer and say they need a big increase in the precept to fund a pension scheme that’s gone further into deficit.”

He added: “This burden is something the younger generations will be expected to bear unless people say we are not paying it anymore. It takes a big pot of money to provide someone with a pension of £10,000 a year and people are now living longer.

“There should be a balance – people on modest means are having to fork out for people in the public sector’s lavish pensions and that can’t be right.”