Pensions problem (From Darlington and Stockton Times)

Pensions problem

11:51am Friday 5th June 2009

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THE unsustainability of the police pension system was in the news this week. Richard Lambert, director-general of the Confederation of British Industry and a former editor of the Financial Times, said the generous police scheme would not be considered viable in the private sector.

He added that future public spending cuts combined with obligations to police pensioners will render it an increasing burden on the operational budgets of police forces. He estimated that pension payments will rise to two-fifths of the police service’s officer salary bill by 2020. That can only mean cuts in the police service, more specifically cuts in the number of officers and a consequent rise in crime.

This problem is not new. Ten years ago, the then Home Secretary Jack Straw admitted privately to this newspaper that the police pensions system could not continue, but he also did not volunteer to do anything about it himself. It is a buck that has been passed from Home Secretary to Home Secretary The issue is, of course, politically sensitive. The Police Federation is very adept at making out the special case for its members, a case which the public has sympathy with. Police do a difficult job which many others would not countenance.

But, the new financial landscape, and particularly the growing hole in the public finances, means the pensions’ nettle has to be grasped.

The 30 years service rule, which allows officers to retire on a full pension aged just 50, has been amended (it is now 35 years for new entrants). It is still mighty generous.

Increasingly, it is not fair that these public sector workers, above all others, enjoy these benefits. The country cannot afford them.

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