Public sector pensions

On Saturday, the press reported a massive protest in Dublin against the worsening state of the economy

Despite the coverage, it would seem that not many on this side of the Irish Sea are too sure what the strikes are about as the news coverage has been scant to say the least.

Having been over in Ireland recently, it would seem that the row is all about public sector pensions or, actually who should pay the pensions.

Simply put, the government has decided that it will save money by getting public sector workers to pay more of their share of their pension. Essentially this means that the state pays less into the pension and that this is compensated directly from the workers' monthly salary.

This means, of course, that the take-home pay is then reduced, although it is not strictly a pay cut as the money is put into the individual's pension pot.

As a result, around £1.2 billion pounds will be saved by the State not paying into the pension scheme.

Not surprisingly, as shown on Saturday, there has been a massive backlash to these proposals.

However, given that there has been growing concern about the state of public sector pensions in the UK, how soon before such a move is considered by the UK Government as public finances run out of control?

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