Reports and Campaigns

spotAbout the Socialist Party

spotAnti-capitalism

spotAnti-privatisation

spotAnti-war

spotElection campaigns

spotEnvironment

spotHealth

spotSocialist women

spotWorkplace

spotYouth and Students

All keywords


Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Post Office keywords:

Post Office (79)

Royal Mail (157)


Reports and campaigns:

Anti-capitalism (1237)

Anti-fascist (561)

Anti-racism (704)

Anti-war (1488)

Asylum (211)

Black and Asian (394)

Children (377)

CNWP (108)

Corporate crime (2)

Disability (201)

Education (3914)

Election campaigns (2448)

Environment (608)

EU (450)

Finance (99)

Food (270)

Health and safety (33)

Health and welfare (315)

Housing (1036)

Human Rights (380)

LGBT Pride (143)

Local government (2180)

Local services (3658)

Low pay (509)

Migration (56)

Nationalisation (145)

New workers party (467)

NHS (1842)

Pensions (701)

Post Office (222)

Poverty (573)

Privatisation (1017)

Public Services (1131)

Socialism (872)

Socialist (43)

Sport (196)

Stop the slaughter of Tamils (90)

Students (1829)

The state (1368)

Transport (551)

TUSC (999)

Welfare rights (716)

Women (763)

Workplace and TU campaigns (8261)

Youth (1966)

Related websites

Youth Fight For Jobs

Trade Unionist and Socialist Coalition

National Shop Stewards Network

Tamil Solidarity


Highlight keywords  |Print this articlePrint this article
From: The Socialist issue 961, 6 September 2017: Fight council cuts - back the Brum bin strikers!

Search site for keywords: Pensions - Workers - Pension - Green - Government - Strike - CWU - BT - TUC - Union - Royal Mail - Equity - BMW - Car workers - Health

Bosses' pensions robbery

Money which should have gone on workers' pensions has gone on bosses' profits and dividends, photo TaxRebate.org.uk (Creative Commons)

Money which should have gone on workers' pensions has gone on bosses' profits and dividends, photo TaxRebate.org.uk (Creative Commons)   (Click to enlarge)

Simon Carter

Pensions are back in the headlines with the news that FTSE 350 companies' pension deficits are equivalent to 70% of their annual profits. For decades, bosses have been closing workers' 'final salary' pension schemes - also called 'defined benefit' (DB) - both to new entrants and existing members.

DB schemes are based on a percentage of final salary multiplied by the number of years in the scheme. Sometimes they are replaced with a far less generous 'defined contribution' schemes or 'career average' pensions. In the private sector the number of workers in final salary schemes fell to 600,000 in 2013, from 1.4 million in 2006.

The latest company to scrap its final salary pensions is BT. BT had already closed its DB scheme to new entrants back in 2001.

The Communications Workers Union (CWU) has threatened strike action unless the company reverses course. Recently BMW car workers and Atomic Weapons Establishment workers went on strike to defend their pensions.

Earlier this year Royal Mail said it would shut its DB scheme in March 2018. As a result of closure the CWU said a 50-year-old postie earning 25,000 a year and retiring at 65 would lose 4,392 a year, or more than 100,000 over the course of their retirement.

Companies axing their DB schemes claim that most pension pots - 74% - are in deficit, and the deficit is growing, making them unsustainable. Although top directors continue to have their final salary schemes generously topped up - see TUC's annual 'PensionsWatch' report.

However the Pensions Protection Fund, established by the government, flatly contradicts this claim, saying most of the funds currently in deficit will return to health in 15 years' time. Multinational financial services firm PwC points out the recent rise in equity markets has shaved 20 billion off the overall deficit.

Moreover the government's recently published green (consultation) paper said that DB schemes are not unaffordable. It stated that FTSE 350 companies on average paid out five times more in shareholders' dividends then they put towards their pension pot deficits.

The most notorious example of this practice was of course BHS. Its then owner Sir Philip Green looted hundreds of millions from the company in dividends resulting in the pension fund going from surplus to a 571 million deficit. Infamously, Green was pictured lounging on his 100 million superyacht in the Mediterranean while BHS workers were thrown on the dole.






Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Related links:

Pensions:

triangleBT pensions review - oppose the attacks on the pension schemes

trianglePlymouth PCS members fight relocation threat

triangleRoyal Mail bosses block strike - back postal workers

triangleSet for national strike action

triangleCWU strike ballot to win 'Four Pillars'

Workers:

triangleSupport the Crossrail Woolwich walkout

triangle110 years ago: massacre at Santa Maria school in Chile - commemorate 21 December 1907

triangleThe Socialist's 2017 quiz

triangleA world in crisis, ripe for revolution

Pension:

triangleYoung people being strangled by debts

triangleThyssenKrupp - Tata steel merger

triangleCWU strike ballot - why I'm voting Yes

Green:

triangleUSA: Historic vote for Ginger Jentzen campaign in Minneapolis

triangleCardiff East Socialist Party: Why you have to be Red to be Green

Government:

triangleTrump's incendiary Jerusalem statement reignites Israeli-Palestinian conflict

Strike:

triangleNewham anti-academies strikes

CWU:

triangleUnite local government sector plans strike ballot

BT:

triangleBT attack on pension benefits

TUC:

triangleNSSN meeting brings together workers in struggle

Union:

triangleSix months on - still no justice for Grenfell

Royal Mail:

triangleCWU fights court attempt to stop national strike

Equity:

triangleWhat we saw

BMW:

trianglePensions strikes continue at BMW

Car workers:

triangleObituary: Derek Robinson, car workers' leader, 1927-2017

Health:

triangleSouth London health bosses' cover-up